Brazil Hydropower Auction Opportunity

Brazil’s 2025 “A-5” auction will contract nearly 3 GW of new hydro projects worth up to $7.2 billion, opening a $1.3–2.9 billion opportunity for U.S. suppliers of hydropower equipment and solutions.

The National Electric Energy Regulatory Agency (ANEEL) has approved the notice for Brazil’s 2025 “A-5” New Energy Auction, scheduled for August 22, 2025. The auction will contract new hydroelectric generation projects, including Small Hydroelectric Plants (PCHs), Hydroelectric Generation Plants (CGHs), and Hydroelectric Plants (UHEs) with capacity of up to 50 MW, for energy delivery starting January 1, 2030.

The A-5 New Energy Auction contracts will follow the “by quantity” model with a 20-year duration, and energy delivery will begin on January 1, 2030. A record 225 projects totaling 2,884 MW have already been registered with the Energy Research Company (EPE), underscoring strong market interest.

The 2025 auction represents a substantial investment pipeline of $4.3–7.2 billion, based on average costs of $1.5–2.5 million per MW. For U.S. exporters, the potential market share is estimated at $1.3–2.9 billion over the next three to five years, reflecting strong demand for imported equipment and specialized services to support nearly 3 GW of new small- and medium-scale hydro capacity. This creates a robust window of opportunity for U.S. suppliers of advanced technologies and solutions that enhance efficiency, reliability, and sustainability in hydropower generation.

Key areas of demand include turbines, generators, transformers, and automation systems, alongside grid integration technologies such as SCADA platforms, digital monitoring, and smart protection systems. There is also growing interest in environmental solutions, including fish-friendly turbines and water flow optimization, as well as O&M innovations like predictive maintenance software, remote diagnostics, and workforce training.  

U.S. firms seeking to participate should note that projects must be operational within five years of the auction. Success will depend on aligning with Brazil’s focus on clean and decentralized energy and establishing strong partnerships with local developers, EPCs, engineering firms, and financial stakeholders.

For more information on the 2025 A-5 New Energy Auction and opportunities for U.S. companies in Brazil’s hydropower market, please contact Igly Serafim, Commercial Specialist at the U.S. Consulate in Sao Paulo, Brazil at igly.serafim@trade.gov.