GDF SUEZ and International Power (70% owned by GDF SUEZ) are pleased to announce that following a successful outcome of the A-3 energy auction in Brazil on 17 August, the Jirau hydro project will be expanded from the original concession of 44 units to 50 units. This expansion will take the total capacity of the project under construction from the initial 3,300MW to 3,750MW, with the majority of its output contracted under long-term Power Purchase Agreements (PPAs).
The six units have been allocated 209MW of assured energy and 100% of this energy has been sold in the regulated market at an inflation-indexed price of R$102MWh (US$64/MWh) for 30 years commencing in 2014. The total assured energy for the whole project now amounts to 2,184MW, of which 73% is contracted under long-term PPAs. The balance will be sold in the free market, principally to industrial customers. In addition, this expansion may allow for a further 90MW of assured energy to be allocated to the project.
The design of the Jirau power plant took into account the potential for additional units. As a result, this expansion will benefit from shared infrastructure and economies of scale that will add value to the project.
Gérard Mestrallet, Chairman and CEO of GDF SUEZ, said:"The expansion of the Jirau project, which is the largest hydro power project currently under construction in the world, reinforces our commitment to providing Brazil with clean and renewable energy. It further illustrates the Group’s strategy to increase its exposure to fast growing markets.”
Philip Cox, CEO of International Power, commented:“The energy auction price and our decision to add six units to the Jirau plant allows us to capitalize on the attractive fundamentals of the Brazilian energy market, which is characterised by strong demand growth.”
International Power owns 50.1% of the project company Energia Sustentavel do Brasil (ESBR) that is building the 3,750MW (50 units of 75MW each) Jirau hydro project on the Madeira river in Brazil.
International Power’s net ownership in the project represents 1,879MW of capacity. The asset is expected to be transferred to Tractebel Energia.
About International Power
International Power plc (iprplc-gdfsuez.com) is a leading independent electricity generating company with 72,360MW (gross) (42,225MW net) in operation and a significant pipeline of 15,503MW (gross) (6,561MW net) projects under construction as at 30 June 2011. International Power is listed on the London Stock Exchange with ticker symbol IPR. GDF SUEZ holds a 70% interest in International Power plc.
Sally Hogan - T: +44 (0)20 7320 8678
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About GDF SUEZ
GDF SUEZ (gdfsuez.com) develops its businesses around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: liquefied natural gas, energy efficiency services, independent power production and environmental services. GDF SUEZ employs 218,350 people worldwide and achieved revenues of €84.5 billion in 2010. The Group is listed on the Brussels, Luxembourg and Paris stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone and ECPI Ethical Index EMU.
Investor relations contact:
T: +33 (0)1 44 22 66 29 / E: ir[.]gdfsuez.com.