Brazil Still Passionate about “Small” Hydrokinetics

As part of my quest to help a colleague find an investor for his small hydrokinetics projects in Brazil, he and I have frequent conversations about the strength of the overall market.  In that vein, he just sent me this piece in a recent publication on the subject:

Feb 12, 2015 (SeeNews) – Brazilian electricity sector watchdog Aneel on Tuesday allowed Perola Energetica SA, a subsidiary of Brookfield Energia Renovavel SA, to acquire two small-scale hydropower projects of a total 46 MW from Silea Participacoes Ltda and partners.Perola will acquire 100% of Phoenix Geracao de Energia SA, responsible for the Verde 4A project, and Savana Geracao de Energia SA, which owns Verde 4, both located in Mato Grosso do Sul state.

The plants, of 27 MW and 19 MW, are due to start commercial operation in 2017 and 2018, respectively. Silea Participacoes Ltda controls each project with 51%, while Darci Mario Fantin and Marlene Barbara Fantin hold 48% and 1%, respectively.

Readers should notice that both projects are under 30 MW, and thus qualify as “small”; this means that the regulations that apply to them are quite permissive.

I wrote back:

Yes, there really IS a market for this stuff.  I’m convinced that we’re barking up the right tree here.  I’ll continue to look for the right investment partner, in case the four or five people/groups I’ve referred to you so far don’t work out.

Per our discussions on the subject, one never knows with things like this.  Over the years I’ve seen prospective investors fizzle who looked solid as oak and totally committed, and I’ve seen investors I believed to be flaky whackos astonish me and come through with the goods.  That’s why I normally keep my opinions on people to myself; they don’t add value, and they’re frequently wrong.  It’s best to try to treat every single one as if he were Bill Gates or Warren Buffett.