The Suez group, Consorcio Energia Sustentavel, offered to produce energy at 71.4 reals ($43.53) per megawatt hour, 21.6% below the auction’s established price cap.Jirau Energia, the rival consortium, offered 78.9 reals ($48.1) per megawatt hour.
Suez Energy holds a 50.1% stake in the winning bidder, which is also comprised of Brazilian companies Camargo Correa Investimentos, Eletrosul Centrais Eletricas and Companhia Hidreletrica do Sao Francisco.
Victor-Frank Paranhos, president of the consortium, said technical studies allowed a reduction of 1 billion reals ($602 million) in the total cost of the project, initially estimated at 8.7 billion reals ($5.2 billion).
The Jirau power plant, which will be built on the Madeira river, should have a capacity of 3,300 megawatts of power when completed in 2013. (Xinhua)