With construction work underway on its first hydro plant purchase in Brazil, Velcan Energy has further expanded its portfolio in the country with the acquisition of a 16MW project.
Construction of the Quebra Dedo plant on the Suaci Grande river, in Minas Gerais state is expected to start in about a year, depending upon receipt of authorisation. Production is not due to commence until 2010-11.
The plant is expected to deliver a financial performance similar to the company’s 14.7MW Rodeio Bonito project, which is currently under construction in Santa Catarina state. Rodeio Bonito is scheduled to commence operations in a year.
Late last year the company raised funds from investors to develop its portfolio of renewables assets, including biomass, in Brazil and India. Velcan’s biggest hydropower projects are in India and the four projects have a total installed capacity of 304MW.