Portugal’s EDP to invest US$1.38 billion in production projects in Brazil

28 November 2006

Peixe Angical, Brazil, 28 Nov – Portuguese electricity company, EDP, plans to invest some 3 billion reals (US$1.38 billion) between 2007 and 2010 in new electricity generation projects in Brazil, the company’s chief executive said Monday.

The final figures will be ascertained by the end of November and will be part of the business plan for 2007/2010, which will be approved in January, António Mexia told journalists after the inauguration of the Peixe Angical hydroelectric dam on the Tocantins river in Brazil.

With this investment, EDP hopes to double its current installed capacity of around 1,043 megawatts (MW) by 2010.

EDP’s priority is for small and medium-sized hydroelectric projects, of up to 500 MW, Mexia said.

Large-scale hydroelectric projects are not part of the company’s plans, but EDO is beginning to consider thermal projects, preferably coal-fired plants as well as biomass projects.

The aim is to increase the weighting of generation in the business at a time when Brazil faces the challenge of installing greater power production capacity.

Last year, the weighting of generation on the company’s results was 10 percent, but Mexia plans for that figure to rise to 27 percent in the long term.

The Peixe Angical dam, with 452 watts of capacity, is proof of the efforts EDP has made to increase the weighting of generation in relation to distribution in Brazil, Mexia said.

EDP’s chairman noted that this was the first project carried out within nth scope of public-private partnerships, as it was set up by the Enerpeixe consortium, made up of Energias do Brasil (60 percent) and Furnas (40 percent). (macauhub)