Brazil will be able to expand renewable capacity from PCHs by 300%

The 1.192 processes in ANEEL (National Electric Energy Agency) prove that Brazil has the potential to expand its renewable energy generation capacity from PCHs (Small Hydroelectric Power Plants) in approximately 300 %.

This is what Ademar Cury, vice-president of Abrapch (Brazilian Association of PCHs and CGHs). In total, around 110 PCHs and CGHs are under construction or awaiting licensing.

Data from ANEEL (National Electric Energy Agency), obtained by Abrapch, indicate that 594 small plants are in the phase of Dispatch of Registration of Intent for Granting Authorization or Declaration of Water Availability Reserve, so that the interested party can request the pertinent Environmental Licensing from the competent bodies at the Agency.

Another 598 processes are in the available axis stage, which means they are suitable for users interested in developing hydroelectric inventory studies.

According to Cury, with greater investment in PCHs and CGHs it is possible to reduce the generation of thermoelectric plants, making Brazil produce cleaner and cheaper energy.

“We will reinforce the need for greater tax equality and incentives in relation to other sources, for the commercial viability of available projects,” he said.

Currently, PCHs and CGHs together have 5.560 MW of capacity. There are 1.046 plants in operation in the country. Among their advantages are generation close to the load, reduced losses, lower investments in transmission, 100% national technology, scientific/technological development and the ability to regulate river flows, for example.

Potential for investments in PCHs and CGHs

Abrapch estimates indicate that Brazil has the potential for investments of around R$131 billion in the PCHs and CGHs sector. In the last five years, 65 PCHs and 52 CGHs came into operation in Brazil, totaling 938,81 MW of installed power. In total, the 117 small plants generated an investment of R$7,9 billion in different regions.

Midwest Potential

Another point highlighted by Abrapch is that the Central-West region of Brazil has the potential to leverage R$50 billion in private investments with the construction of PCHs and CGHs.

The forecast is based on hydroelectric inventory study data made available by ANEEL, which report the possibility of implementing 147 PCHs and 30 CGHs in the states of Goiás, Mato Grosso, Mato Grosso do Sul and Tocantins.

“There would be 384 more projects with new 4.910,82 MW. Considering that the cost for each megawatt of installed energy generates around R$10 million, the investments would reach almost R$50 billion with the generation of approximately 302 thousand direct jobs”, informed Alessandra Torres de Carvalho, president of Abrapch .

In Goiás alone, the water inventory indicates the possibility of 177 new projects, 2.456 MW (PCH and CGH) and an investment of R$24 billion. Mato Grosso has the potential for 139 small plants, 1.756 MW and R$17,5 billion in investments.

In Mato Grosso do Sul there would be 42 projects, 616 MW and R$6 billion in contributions. In Tocantins, the water potential allows the construction of 26 small plants, 200 new MW and R$2 billion in investments.