07/05/2014 back

Queiroz Energia plans to double generation capacity

The amount to be invested may vary depending on the type of energy and the actual price at the auction

07/May/2014 / By Mariana Sallowicz

http://exame.abril.com.br/negocios/noticias/queiroz-energia-pretende-dobrar-capacidade-de-geracao

Queiroz Galvão: Today, the company has 1,000 megawatts of capacity (Photo: Press Office)

Queiroz Galvão Energia plans to double its power generation capacity to 2,000 megawatts by 2020, with estimated investments of R$3 billion to R$4 billion. Today, the company has 1,000 megawatts of capacity, of which half is operating and half is being built.

The amount to be invested may vary depending on the type of energy and the actual price at the auction The company’s CEO, Max Xavier Lins, said that Queiroz Galvão Energia is ready to take part in the coming energy auctions, but emphasized that effective participation will depend on the conditions.

In addition to a capacity of more than 1,000 megawatts, the company has around 600 megawatts of wind power that may be implemented in areas it owns for this end.Their current capacity includes 60% of wind power, with investments of R$3 billion. Lins did not specify how much is operating and how much is being built.

Regarding the A-3 auction scheduled for 6 June, the CEO said that an important condition was announced yesterday: the price cap will be R$148 per megawatt/hour for small hydroelectric power plants and R$133 per megawatt/hour for thermoelectric power plants and wind farms.

“We now need to know the return rate vis-à-vis the price. A number of variables need to be analyzed. It is an A-3 auction, but in actual fact, it is an auction for two and a half years only”, he said in Brazil’s 11th National Meeting of Electricity Sector Agents.

The reserve auction, which has not been scheduled yet, is another option for the company. “We will always be prepared to take part in auctions. But whether we will bid or not will depend on the specific conditions of each auction”, he explained.

As for the crisis the sector is experiencing, Lins said that “we are going through a peculiar moment”, but that this is not news. “We have been through this before”. He believes the situation “can be overcome”. “The government has been taking the actions required to overcome it. We have no doubt that this will be one more episode to overcome, and the sector will go on”, he said.

The CEO says the company operates with all energy sources and estimates the most competitive today is wind power, although he says small hydroelectric power plants are beginning to show “vital signs”.