Neoenergia, an Iberdrola company, will build three hydro power plants in Brazil

Iberdrola, which owns around 39% of the Neoenergía holding capital, has been selected to build, maintain and operate the Baguari (140 MW), Nova Aurora (21 MW) and Goiandira (27 MW) hydro power plants. The Nova Aurora and Goiandira plants, located on the Verissimo river, in the state of Goias, will sell the energy produced at a fix price of 100 reals per MWh. Likewise, a consortium formed by Neoenergia (51%), Cemig (34%) and Furnas (15%) will build, maintain and operate the Baguari hydro plant (140 MW), located in the state of Minas Gerais. The plant will have a 20 square kilometre dam in the Doce river, plus five additional square kilometres in the Corrente Grande river.

Neoenergía, a holding leaded by Iberdrola and its partners Previ-Caixa de Previdencia dos Funcionarios do Banco Brasil and BB Banco de Investimentos, includes electricity distributors Coelba (Companhia de Electricidade do Estado da Bahía), Celpe (Companhia Energética de Pernambuco) and Cosern (Companhia Energética do Río Grande do Norte).

Iberdrola is Northeast Brazil's largest electricity distributor thanks to its share in the above mentioned companies. Overall, these three utilities supplied 23,277 million kWh in 2005, some 7.5% more than the former year, a figure which represents a share of 58% of the regional market and 7% of the national one. The revenues achieved by these companies, which serve around 7 million customers, reached last year 709 million euros, 53.4% above 2004 levels.

The Spanish utility had 471 MW of capacity in Brazil by the end of 2005, coming from the Termopernanbuco combined cycle plant (with 520 MW, 203 of which belong to Iberdrola) and the Itapebí hydro power plant (with 450 MW, 175 of which belong to Iberdrola). Besides, the company owns 93 MW of operational cogeneration capacity through Energy Works, an Iberdrola 100% owned company.

In regards to renewable energies, Iberdrola is currently working the Rio do Fogo windpark, with a capacity of 49.3 MW (6.4 MW already operational), located in the state of Rio Grande do Norte. It will be the first one that the company builds in the country.

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