Brasil PCH

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The Brazilian company Brasil PCH was granted authorizations to build and operate thirteen small hydro power plants located in the states of Rio de Janeiro, Minas Gerais, Goais and Espirito Santo (269 MW in total capacity). The 30-year contracts were signed with the regulatory agency ANEEL over the years since December 1999. Brasil PCH was established as a partnership of Petrobras (49%), Eletroriver (21.56%), BSB Energetica (14.7%), Araguaia Centrais Eletricas (12.74%) and Jobelpa (2%). The first contract signed was for the Carangola Power Plant, which was set to have a capacity of 15 MW. Construction works on this plant started in 2006 and the unit became operational in 2008. Twelve other projects were implemented since then and, as of June 2009, were also operational: PCH Bonfante, at Paraibuna river (MG), with capacity of 19 MW; PCH Calheiros, located at Itabapoana river (RJ), with capacity of 19 MW; PCH Funil, located at Guanhaes river (MG), with capacity of 22,5 MW; PCH Jatai, located at Rio Claro river (GO), with capacity of 30 MW; PCH Retiro Velho, located at Rio da Prata river (GO), with capacity of 18 MW; PCH Sao Joaquim, located at Benevente river (GO), with capacity of 21 MW; PCH Sao Simao , located at Itapemirim river (ES), with capacity of 27 MW; PCH Fumaça IV (Caparao SA), located at Rio Preto river (MG), with capacity of 4,5 MW; PCH Irara, located at Rio Doce river (GO), with capacity of 30 MW; PCH Monte Serrat, located at Paraibuna river (MG), with capacity of 25 MW; PCH Santa Fe I, located at Paraibuna river (MG), with capacity of 30MW; and PCH Sao Pedro, located at Rio Jucu Braco Norte (ES), with capacity of 30 MW. Brasil PCH committed to invest US$ 581.2 million (BRL 1.3 billion) in the construction of the thirteen PCHs. In 2006, the project reached financial closure when Brasil PCH was granted a US$ 370.2 million (BRL 807 million) loan from the state-owned bank BNDES. Most of the power plants were set to sell electricity to the national grid. The power plants had agreements with the distribution companies Light, CEMIG, Ampla, ESCELSA, Enersul and CELG. Except for PCH Calheiros, all other power plants signed power purchase agreements with the state-owned company Eletrobras for 20 years through the Brazilian Federal program PROINFA (incentive program for alternative power generating companies). In February 2014, Renova Energia acquired 51% of Brasil PCH's shares in a deal worth US$ 314.8 million (BRL 739.9 million).