During energy auctions held recently in Brazil, Suez – through its affiliated company Tractebel Energia – sold 493MW of hydro power for Euros 6B (US$7.65B) covering a term of 30 years starting in 2009.
The company sold respectively 220MW and 273MW of its existing hydro power plants Ita and Cana Brava at an average price of Euros 46.67/MWh (US$59.50/MWh), surpassing the average auction price.
As a result of the auction, held on 29 June, Tractebel Energia will sign contracts representing a predictable cash flow of Euros 6B with electricity process which are internationally competitive.
‘Through the different auctions the new Brazilian market model – introduced three years ago – has proven to bring predictability and gradually improved the attractiveness of the Brazilian power sector for Suez,’ said Dirk Beeuwsaert, CEO of Suez Energy International. ‘The outcome of this auction resulted in contracts secured for 30 years and are essential for the optimisation and risk management of Tractebel Energia’s client’s portfolio.’
Another energy auction is scheduled for 5 September 2006, at which Suez plans to offer electricity from new projects for a 30-year term starting in 2011.