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LCG Publishes 2024 Annual Outlook for Texas Electricity Market (ERCOT)

LCG, October 10, 2023 – LCG Consulting (LCG) has released its annual outlook of the ERCOT wholesale electricity market for 2024, based on the most likely weather, market, transmission, and generator conditions.

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LCG Publishes 2024 Annual Outlook for Texas Electricity Market (ERCOT)

LCG, October 10, 2023 – LCG Consulting (LCG) has released its annual outlook of the ERCOT wholesale electricity market for 2024, based on the most likely weather, market, transmission, and generator conditions.

Read more

Industry News

Brazil Power Plant Concessions Bring Big Premiums

LCG, June 29, 2001Bidders for eight concessions in electricity-short Brazil to build and operate hydroelectric plants brought plenty of money to the auction yesterday, paying a premium of eight times the total minimum set by the government electricity regulator Aneel.

Among those winning concessions and paying the highest premiums were companies that can't live without large amounts of power, and seek to generate their own. U.S. aluminum company Alcoa paid a premium said to be 3,000 percent over the government's base price and Brazilian metals giant Cia Vale do Rio Doce was awarded the largest project.

Alcoa's group paid 37 million reals ($16 million U.S.) for the right to build a 210 megawatt facility in the state of Goias. The project will require an investment of around 320 reals ($138 million).

Cia Vale do Rio Doce's group won the right to an 840 megawatt plant to be built on the Uruguai River that separates the states of Santa Catarina and Rio Grande do Sul. That plant will require an investment of 1 billion reals ($430 million).

Bidders agreed to pay a combined 69 million reals ($30 million) in concession fees for a period of up to 30 years. Payment of the fees begins when the plants become operational.

Mario Abdo, head of Aneel, said the auction "was a success, which matches the country's interests. The moment of the (power) crisis boosts the interest in increasing the amount of energy to be offered."

Though Brazil's electricity crisis was brought on by a long drought, officials said the concessions are for hydroelectric plants in parts of the country where there has been no water shortage. In any case, the smallest of the plants will not likely begin operation for about five years.

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