Brazil to Provide Up to 70% of Uruguay’s Electricity’s Needs

Brazil completed the bidding process to export up to 70% of the electricity needed by Uruguay. The announcement of the name of the winning firm, Tradener Ltda., from the state of Paraná, puts the final touches on the arrangement.

The plan was worked out on February 9 at a meeting of government representatives from Brazil, Uruguay, and Argentina, at the headquarters of the Electric Energy Commercialization Chamber (CCEE) and finalized February 23.

According to the note released by the Chamber, seven firms submitted bids, and the winning bid carries a charge of R$ 0.18 per MWh (megawatt hour) acquired on the domestic market. This price refers solely "to the administrative fee charged by the commercial supplier, to which the cost of electricity and other expenses of the system will be added."

The amount of energy to be exported will be limited to the system’s 700 MWh of interruptible transmission capacity. Transmission will begin the first week of March, on the basis of a six-month contract extendable through December. The exported energy will preferentially be generated by a thermoelectric plant that is not being used to supply the domestic market.

The contract also provides for supplying energy from hydroelectric sources, "only when there exists overflow energy potential in the reservoirs of the Brazilian system."

Moreover, "mechanisms should be established to ensure that the energy to be exported does not affect the electro-energetic security of the Brazilian electric power system."

The document also provides that "access will be guaranteed to the transmission systems, in both the basic grid and the private network, to make it feasible to export at the least possible cost."

The president of the CCEE administrative council, Antônio Carlos Fraga Machado, affirms in the note that "the bidding process is the result of a decision by the Brazilian and Uruguayan governments, following an understanding with the government of Argentina, the country which will intermediate the transmission." He goes on to inform that, through the contract, Uruguay will be able to supply up to 70% of its market.

The bidding process was overseen by representatives of the Uruguay National Administration of Electric Plants and Transmissions (UTE), the Brazilian Ministry of Mines and Energy, the Brazilian National Electric Energy Agency (ANEEL), and the CCEE. The final result still depends on a ruling by the UTE.

Agência Brasil

Tags:

You May Also Like

Brazil to Impose Bans on Chinese Products

Brazilian President Luiz Inácio Lula da Silva will sign, on the next days, two ...

Brazil Exports Grow to Record US$ 137 Billion, 16.2% More than in 2005

Brazil’s trade balance had its second best monthly performance in 2006 in December, which ...

Brazilian Artist Laura Vinci Brings Her Chaos and Regeneration Art to the US

Brazilian artist Laura Vinci makes her American solo exhibition debut at ArtCenter/South Florida with ...

Obama Wants to Visit Favela in Rio During His Trip to Brazil

American president Barack Obama’s agenda for his visit to Brazil on March 19 and ...

Mercosur: Contesting Uruguay Brazil Says Putting Pressure Is Not Country’s Style

Brazil’s Special Presidential Adviser for International Affairs, Marco Aurélio Garcia, defended the decision to ...

Brazil’s Agro Research Czar’s Dream: Attune Technology and Environment

Pedro Antonio Arraes Pereira, the Brazilian researcher and engineer  who assumed the presidency of ...

US Treasury Secretary Scolds Brazil for Corruption and Bureaucracy

The yuan needs to "adapt" to the vigor and strength of the Chinese economy, ...

Brazil’s Barbecue Alchemist Is Bringing His Art to the US

Neither doctor, nor astronaut, nor fireman. The childhood dream of Ricardo Penna was always ...

Brazil Draws a Road Map for Its 10 Frontiers

The Brazilian government is studying the implementation of development policies for frontier regions. According ...

Brazilians Meira and Castroneves Shine at Dramatic Indy 500

Seven Brazilians had qualified for the Greatest Spectacle in Racing, three in the first ...