Wedoany.com Report-Aug. 25, Brazil’s energy regulator, Aneel, announced on Friday that the country’s first auction dedicated to small and medium-sized hydroelectric dams is expected to attract approximately 5.5 billion reais ($1 billion) in investments. This initiative marks a significant step in enhancing Brazil’s energy infrastructure with a focus on sustainable development.

The auction secured a total capacity of 815 megawatts (MW) across 65 plants, each with a maximum output of 50 MW. These projects, which may involve constructing new facilities or expanding existing ones, are set to begin supplying electricity in January 2030 under 20-year contracts, as outlined by the auction guidelines.

At an event in Brasilia, Mines and Energy Minister Alexandre Silveira highlighted the auction’s role in advancing Brazil’s energy transition. He noted: “Smaller hydro plants have limited impact on the environment,” emphasizing their suitability for sustainable energy growth. The initiative aligns with efforts to diversify Brazil’s energy sources while maintaining environmental considerations.

Silveira also discussed the potential for expanding hydroelectric energy through larger dams. He revealed ongoing discussions with President Luiz Inacio Lula da Silva to explore new large-scale hydroelectric projects. This follows a recent cooperation agreement with Bolivia to utilize the Madeira River’s potential in the Amazon region, aiming to boost regional energy production.

Brazil has not pursued new large-scale hydroelectric projects since the Belo Monte dam, which faced significant scrutiny due to its environmental and social impacts on the Amazon and Indigenous communities. The focus on smaller dams reflects a strategic shift toward projects with reduced ecological footprints while still meeting energy demands.

The auction’s success underscores Brazil’s commitment to strengthening its energy sector through investments in hydroelectric infrastructure. By prioritizing smaller-scale projects, the country aims to balance energy reliability with environmental stewardship, supporting long-term sustainability goals.