Brazil to add 2.9GW of hydropower in 2014

Brazil will add 2.9GW of hydroelectric capacity in 2014 despite rising concerns over the impact of drought on the country's power grid.

The Brazilian government made the announcement during the signing of a 30-year concession contract for the 400MW Sinop plant in Mato Grosso state.

According to energy minister Edison Lobão, Brazil will also add 1.6GW of wind and 1.5GW of thermopower in 2014.

HYDRO-DEPENDENT

More than 80% of Brazil's installed capacity is hydro-based, leading experts to warn more investments are needed in unconventional sources.

"Brazil has not heeded its lessons," said Artur de Souza Moret, a professor of environmental studies at the Unir university in Porto Velho, in an interview with local media.

"Planning for Brazil's power supply revolves around hydropower and no attention has been given to alternative sources."

Concerns escalated earlier this month when 11 states were left without power for more than an hour. While the government blamed the blackout on a transmission fault in Brazil's northeast, analysts pointed to the combined effects of soaring summer demand and drought in hydroelectric catchment areas.

SINOP

Located on the Teles Pires river, Sinop's operating concession was won by a consortium comprising Alupar (51%) and Eletrobras (49%) last August.

The plant includes a regulated flow mechanism that allows water to be stored and released during periods of low rainfall.

It is due to begin operating in 2018 and will require investments of 1.8bn reais (US$770mn).