GDF SUEZ unveils €2.1bn hydro plant in Brazil

Brazilian power producer GDF SUEZ has unveiled the 1,087MW hydroelectric power plant at Estreito in Brazil.

The hydro plant is estimated to cost €2.1bn with funding being provided by the Brazilian Development Bank (BNDES) and a group of Brazilian banks via a 24-year loan.

Estreito is situated on the Tocantins river between Tocantins and Maranhão states, close to the 243MW São Salvador and 450MW Cana Brava hydro plants owned by Tractebel Energia, a subsidiary of GDF SUEZ.

A part of the government’s Program for the Acceleration of Growth (PAC), Tractebel Energia owns the majority stake of 40.07% in Estreito and manages the operations of the plant.

Vale, Alcoa and Intercement together own the remaining stake in the project. The plant is estimated to provide sufficient energy to cater to the needs of 4 million people.

GDF SUEZ chairman and CEO Gerard Mestrallet stated that Brazil is at the heart of the group’s strategy in Latin America.

"We are keen to participate in meeting the growing energy needs of the country through the development of projects that provide clean and renewable energy.

"As the leading private power producer in Brazil, we believe that our Brazilian portfolio provides an excellent base to achieve sustainable and profitable growth," Mestrallet said.

GDF SUEZ has signed 30-year power purchase agreements with several distribution companies to sell 256MW of energy output from the plant.