Brazil is already a mature power market where power production is well regulated and the private sector plays a significant role. Despite generating close to 80% of electricity from hydropower, it needs significant investments (4,000 MW/year) to satisfy the huge economic growth expected. Power consumption in Brazil is still 63% below the European Union average. Brazil has one of the biggest installed hydropower capacity in the world. This has enabled the country to have a cheap and very stable source of power for the development of its economy. Brazil is therefore very keen on expanding this installed hydro power base, especially as the remaining hydro potential is estimated at 180 GW.
Concessions under development
571MW Yarjeep Concessions in the State of Arunachal Pradesh
Velcan Energy obtained these 3 concessions on the Yarjeep river in Arunachal Pradesh in July 2007. This cascade of projects (Pauk, Heo and Tato 1) was initially thought to be a 200 MW project. However, detailed hydrological investigations showed that the water flow in the Yarjeep river was much higher than anticipated. The group therefore obtained an increase in the size of the concession from 200 MW to 500 MW from the Government of Arunachal Pradesh in July 2009 as well as the necessary pre-clearance from the Ministry of Environment and Forest in April 2010. The Central Electricity Authority (CEA) of India has estimated the size of this project should be increased to 571 MW. The Group believes it is still the only foreign company to own such a concession in India.