Auction A-5 contracts 815.6 MWh and generates R$ 8 billion.

The 39th A-5 New Energy Auction, held this Friday (22) by the Ministry of Mines and Energy (MME) and conducted by the Electric Energy Trading Chamber (CCEE), resulted in the contracting of 815.6 MW of installed capacity. The amount will be generated by 65 hydroelectric plants, with an average price of R$ 392.84/MWh, representing a discount of 3.16% in relation to the reference ceiling of R$ 411/MWh.

Investments total around R$ 8 billion, according to data from the Brazilian Association of Small Hydroelectric Plants and Small Hydroelectric Power Plants (Abrapch). Considering the average cost of R$ 10 million per megawatt installed, the total volume of investments could reach R$ 8.8 billion.

During the auction, the Minister of Mines and Energy, Alexandre Silveira, highlighted the social impact of small hydroelectric plants. “We are securing the present and the future. If we consider the potential of 13 GW of new hydroelectric plants up to 50 MW already planned, we will be able to generate up to 800,000 jobs,” he stated.

Silveira also emphasized the strategic role of hydroelectric power in the country's reindustrialization. “The resumption of hydroelectric projects boosts Brazilian industry, as we control all stages of the production chain, from engineering to operation,” he declared.

The contracted energy will be entirely domestic. Of the total, 96.92% will come from new Small Hydroelectric Power Plants (PCHs) and Hydroelectric Generating Plants (CGHs) projects — ventures that had been waiting for this auction for 12 years — while 3.08% correspond to Hydroelectric Power Plants (UHEs). There are projects included in all regions of Brazil.

“The contracting of almost 815.6 MW of installed capacity represents a very important recovery for the PCH sector, with approximately R$ 8 billion in investments and the generation of almost 50,000 jobs in the country,” said the president of Abrapch, Alessandra Torres de Carvalho, during her speech at the auction.

The majority of the winning projects were PCHs and CGHs, distributed across several states, with Santa Catarina, Goiás, Mato Grosso, Rio Grande do Sul, and Paraná standing out. The estimated total investment in the winning projects is R$ 5.46 billion. In Paraná alone, the 11 approved projects represent R$ 1.5 billion in investments for energy generation.

“We still have approximately 13 GW of small hydroelectric plants inventoried by Aneel, which could generate more than R$ 100 billion in investments and more than 1 million jobs in over 3,000 municipalities. However, this auction already represents a milestone for the Brazilian electricity sector,” Alessandra emphasized.

She also refuted criticisms of small hydroelectric plants (PCHs), which, she said, were incorrectly classified as "unrelated projects." "They are, in fact, public policies for regional development, of high quality and renewable energy," she stated, highlighting that PCHs and small hydroelectric generating jobs, income, and contributing to environmental protection through their reservoirs.

In addition to providing clean and renewable energy, hydroelectric projects play a relevant socio-environmental role. They contribute to a significant increase in riparian forests around permanent preservation areas—on average 3.5 times more—promote the preservation of springs, and enable the removal of waste from rivers, improving water quality for the population.

These projects also generate jobs and income, raise the Human Development Index (HDI) of the regions where they are located, have low carbon emissions, and do not leave environmental liabilities after the end of their useful life, unlike other sources of energy generation. These factors reinforce the multiple economic, social, and environmental benefits associated with the expansion of the hydroelectric matrix.