Public-Private Sector Partnership to work on Brazil Market Conditioning Work and Business Partnering

US Hydropower has identified a need to support U.S. companies who have purchased Brazilian electric sector assets.  As new players in an emerging and restructured energy sector, Brazilian investors have identified a need to coordinate comments on the changing market.  This feedback and comment mechanism will be important for future investors also, and will ensure that the market evolves to attract additional generation investment. 

U.S. company partners for hydropower projects have been identified in Brazil.  Through this partnering experience, the U.S. industry realizes that there is a need to work closely with US AID and the Government of Brazil to help investors reach financial closure.  This success will be critical for Brazil to attract other investors in small hydro.  U.S. industry needs:  1) assistance on packaging potential power purchasers to achieve investor confidence, 2) assistance from ANEEL to allow industry recommendations on the remove barriers on financial incentives, currency risk, land access, and permit issues; and 3) help to identify and promote other hydropower investment scenarios for potential investors.

Brazil Strategy on Rehabilitation Investment Needed

In order to allow investment to flow, project partnerships also require assistance in working with ANEEL to overcome currency risk barriers and identify long term financial incentives to improve energy efficiency or optimization of existing hydropower assets by using innovative private investment to implement state of the art technology and rehabilitation.  A public private sector partnership between the U.S. and Brazilian governments and the industry will help to assure that the seven newly partnered projects move forward, and that investors are encouraged to take on new investments.