Govt. plans second existing power auction in 2005

Brazil's mines and energy ministry plans to hold a second auction of existing power in early 2005 before tendering future installed capacity licenses by the end of the first quarter, Agencia Estado news service quoted the ministry's executive secretary Maurício Tolmasquim as saying. A decree kicking off the auction's preparatory procedures is expected to be published soon. The first auction of existing power is scheduled for December 7, when 55,000MW are expected to be offered in eight-year contracts for delivery starting 2005, 2006 and 2007. The amount of power to be sold at the second auction of existing power will depend on how much power is sold at the first, the news service reported. The government is also planning to hold up to three future power capacity tenders. The first has already been scheduled for the first quarter and includes projects that will be concluded in five years, the report said. The second auction of future capacity will include projects scheduled to start producing power in three years and the third auction will include projects due to start producing in five years. The second auction may include some 3,100MW of power from thermoelectric generators that do not presently have contracts. Auctions of existing power aim to allow generators to contract excess capacity and rebuild portfolios as power sale contracts expire. The auction of future power capacity is the settlement of power sale contracts for power generation from new power.