On June 28, the Pampa Sul Hydroelectric Power Plant, built by ENGIE at an investment of more than R$ 2 billion, received National Electric Energy Agency (Aneel) authorization to begin generation on a commercial scale. The feasibility of the project was assured following the A-5 auction of November 2014 – prior to the ENGIE Group announcing its planned global strategy for relinquishing all coal-fired generation activities – and construction work began in June 2015 upon receipt of the Installation License from the Brazilian Institute of the Environment and Renewable Natural Resources (Ibama).

Coal-fired and with an installed capacity of 345 MW, the plant is the largest to be built in the South of Brazil in recent years. Its construction was the responsibility of SDEPCI, a Chinese company with vast experience in work involving state of the art technology for the thermal generation segment. “We are delivering an  advanced technology plant which will be of great assistance in the stability of the National Interconnected System’s operations”, declares ENGIE Brasil Energia’s Chief Executive Officer, Eduardo Sattamini. Among the technological advantages of Pampa Sul TPP, the executive points to a series of equipment designed to improve plant operations and reduce emissions into the atmosphere.  “We have overcome many difficulties such as the delay in the construction of the Candiota II Substation, at the same time, demonstrating major executional capability”, the executive added.

As well as collaborating with the domestic electric sector, Pampa Sul has also brought growth to the economy of the state of Rio Grande do Sul as a whole. “The thermal power plant is a landmark event for the region, because since construction work began, it has brought development to the south of the state through investments, employment and greater opportunities for the local population. With its unveiling, the plant will provide direct jobs for  100 while a further 100 will be exclusively  dedicated to its operations” ENGIE Brasil Energia’s Chief Generation Officer, José Laydner points out.

During the four years UTE Pampa Sul was under construction, a series of socio-environmental programs were  introduced for fostering initiatives involving the avoidance, mitigation and offsetting of environmental damage as well as optimizing social investments in the surrounding region. Activities included the focus on physical, biotic and socio-environmental aspects, the results of which were analyzed in the report which subsequently resulted in the issue of the Plant’s Operating License issued by Ibama.

Among other actions, the Candiota and Hulha Negra communities for example have benefited from the preparation of Master Plans for Urban and Environmental Development which will help towards the structured development of the cities.  Initiatives were also adopted to help ameliorate the traditional problems of municipal water supply. A new Water Treatment Plant was built in Candiota through an agreement between the City Government and Pampa Sul  TPP at an  investment of approximately R$ 2 million.  This installation should meet the demand for water supplies for at least a further 20 years.

Again, besides the new Water Treatment  Plant in Hulha Negra, the reservoir built to supply the Plant will also permit the withdrawal of water for the city itself, a new water main linking the city pending Hulha Negra City Government licensing. “During construction work at the Plant, our focus has been equally on actions in Pampa Sul’s sphere of influence in the region and focusing on the principal needs of the communities by assisting in promoting improvements directly  impacting people’s quality of life”, ENGIE Brasil Energia’s CEO remarks.

The entry of the plant into operations is one more step towards its divestment by the Company. In line with its global strategy, in 2015, ENGIE announced its exit from all coal-fired assets. In Brazil, ENGIE closed its Charqueadas Thermoelectric Plant, while the processes for selling the Jorge Lacerda Thermoelectric Complex and Pampa Sul are ongoing.