Energy for the regulated and free market

The Santo Antônio hydroelectric plant will have a generating capacity of 3,150.4 MW (megawatt), around 3% of Brazil’s current capacity. It will produce more than 19.5 million MWh (megawatt-hour) a year of electrical energy, around 4.3% of Brazilian production in 2007. Of the electrical energy to be produced, 70% will go to the regulated market (distributors) and 30% to the free market (large consumers, such as companies).

The plants will begin to generate energy in December 2011. When it is operating at full capacity, the energy generated will be enough to supply around 11 million people, with a consumption of 145 kWh/month (Brazilian average). The energy generated will be transmitted to the National Interlinked System (SIN) supplying not only the state of Rondônia, but other consumers in Brazil.

The sale of energy to the regulated market was carried out through an auction held by the National Electrical Energy Agency (ANEEL) on December, 10 2007. The winning price offered by Santo Antônio Energy came to R$ 78.87 per MWh and was around 35% lower than the upper price of the auction - R$ 122.00 per MWh. This means it will be the cheapest energy for Brazilians. With this bid, Santo Antônio Energy won the concession to operate the hydroelectric plant and sell the energy for 35 years.

The commercial conditions linked to the technical features of the Santo Antônio HEP highlighted the viability of hydroelectric projects in the Amazon. This project will increase the supply of energy through clean and renewable sources and protect the environment at competitive prices.