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Brazil Secures 815 MW in Small Hydro Auction, Boosting Sustainable Energy
22 Aug
Summary
- Brazil's first auction for small and medium-sized dams
- Generates around $1 billion in investments
- Contracted 65 plants generating up to 50 MW each
- Projects expected to start supplying power in 2030
As of August 22, 2025, Brazil has taken a major step forward in its energy transition by holding the country's first auction exclusively focused on small and medium-sized hydroelectric dams. The auction, conducted by the power regulator Aneel, has resulted in the procurement of 815 MW of capacity, generating around 5.5 billion Brazilian reais (approximately $1 billion) in investments.
The auction included 65 plants, each generating up to 50 MW of electricity. These projects, which can include both new plants and expansions of existing ones, have been contracted for a 20-year period and are expected to start supplying power to the grid from January 2030.
Mines and Energy Minister Alexandre Silveira has hailed this auction as a significant step forward in Brazil's energy transition. He noted that smaller hydro plants have a limited impact on the environment, making them a more sustainable option compared to larger hydroelectric projects. Silveira also mentioned that Brazil is considering expanding its hydroelectric capacity from major dams, and has discussed this possibility with President Luiz Inacio Lula da Silva.
The move towards smaller hydroelectric projects comes after Brazil's decision to halt the construction of new large-scale hydroelectric projects, such as the controversial Belo Monte project, due to concerns over their environmental impact on the Amazon region and indigenous communities.
