SPIC Brasil will invest R$1.4 billion to expand the São Simão Hydroelectric Power Plant, adding 310 MW of capacity and fulfilling an auction commitment, with operations beginning in 2030.
SPIC Brasil, a major player in the energy sector, has announced a substantial investment of R$1.4 billion to expand the generation capacity of its São Simão Hydroelectric Power Plant. Located on the border between Goiás and Minas Gerais, the plant will receive a new generating unit, adding approximately 310 MW to its installed capacity, a significant step towards strengthening the national energy infrastructure.
This expansion project will increase the plant’s total capacity from 1,710 MW to an impressive 2,020 MW, marking an important advancement for the company. The new unit is scheduled to begin commercial operation by 2030, reinforcing SPIC’s commitment to the country’s energy supply.
Strategic Expansion and Auction Commitment
SPIC Brasil’s initiative is not merely an isolated investment; it fulfills a strategic commitment made during the Capacity Reserve Auction in the form of power (LRCap) held in March. At that time, the company secured the contracted availability of 253.385 MW of power for a period of 15 years, with supply beginning in 2030. The São Simão Hydroelectric Power Plant was among the winners, integrating the 2026 LRCap product aimed at expanding existing plants.
The new generating unit, designated as UG7, will have a capacity of 310 MW, exceeding the volume contracted in the auction. This difference is justified because the LRCap remunerates the power availability that the project commits to deliver to the system, while the unit’s installed capacity may be slightly higher. The contract with the government provides for an annual fixed revenue of approximately R$349.9 million for power availability.
International and National Partnerships in Execution
For the execution of this complex project, SPIC Brasil has entered into a main contract with a formidable international consortium, comprising Dongfang Electric Corporation and China Gezhouba Group Corporation (CGGC). These companies will be responsible for the engineering, manufacturing, and assembly of the new unit’s turbine and generator.
The partnership with globally renowned companies ensures the quality and efficiency required for a project of this magnitude, consolidating Brazil’s power generation infrastructure with cutting-edge technology.
Specifically, Dongfang will lead the engineering, technical supervision, and supply of the Francis-type generator and turbine, known for its high efficiency in hydroelectric plants. CGGC will be responsible for the assembly services of UG7 directly at the construction site. Complementing the team, SEEL Engenharia will handle civil works, Tractebel Engineering will oversee owner’s engineering, and Egis Group will manage the environmental package, ensuring the project’s sustainability.
The History of São Simão Hydroelectric Power Plant and Its Future
The expansion will utilize the existing infrastructure of the São Simão Hydroelectric Power Plant, which was originally designed with space for the installation of additional units beyond the six currently in operation. Inaugurated in 1978 and operated by Cemig for decades, the plant’s concession was re-auctioned by the federal government in 2017. SPIC Pacific Energy, a division of SPIC, won the bid with an offer of R$7.18 billion in grant bonus, taking over operations in May 2018 with a new 30-year concession.
This robust investment by SPIC Brasil in the São Simão Hydroelectric Power Plant not only strengthens the country’s clean energy generation capacity but also demonstrates confidence in the hydroelectric sector as a pillar of the energy matrix. The addition of 310 MW represents a significant increase in national energy security, contributing to system stability and the supply of renewable energy, in line with the growing demand for more sustainable and efficient sources. The operation of the new unit in 2030 will solidify SPIC as a key player in Brazil’s energy future.
