Rio do Braco Run of the River Hydropower Plant

active

In January 2009, federal regulator Aneel granted authorization to PCH Rio do Braco SA to begin construction of an 11.88 MW small hydroelectric plant on the border of the states of Rio de Janeiro and Sao Paulo. The primary objective of the Project was to help meet Brazil’s rising demand for energy due to its economic growth and to improve the supply of electricity, while contributing to the environmental, social and economic sustainability by increasing renewable energy’s share of the Brazilian electricity consumption. Pequena Central Hidreletrica Rio do Braco S.A. was formed as the project company with two Brazilian sponsors PCH Rio do Braco S.A. and CARBON DO BRASIL CONSULTORIA EMPRESARIAL LTDA. The shareholding was not known. The total project cost was BRL 70 million (US $35 million). The project company signed an EPC contract in September 2009 and later recieved a loan from the national development bank BNDES in June 2010 for BRL 45.7 million. The project received recognition as a Clean Development Mechanism which would increase its internal rate of return from a low viability level of approximately 10%. Rio do Braco SA had a power purchase agreement and was to sell power to the national grid. The power plant became operational in February 2011.