SPIC Brasil Awards $272 Million Contract to Chinese Consortium for 310 MW São Simão Hydroelectric Expansion

SPIC Brasil signed the engineering, procurement and construction contract with a consortium formed by Dongfang Electric Corporation and China Gezhouba Group Corporation for the seventh generating unit at São Simão hydroelectric plant, located on the border between Minas Gerais and Goiás states. The R$1.4 billion project will add 310 MW to the plant’s current 1,710 MW installed capacity, with commercial operation scheduled for 2030. The expansion fulfills commitments made at the 2026 Capacity Reserve Auction held in March, where SPIC contracted 253.385 MW of power availability for 15 years at R$1.381 million per MW annually.

Dongfang will handle engineering, technical supervision and supply of the Francis turbine and generator, while CGGC takes responsibility for on-site assembly of the new unit. SPIC Brasil CEO Adriana Waltrick characterized the project as the most efficient path to expand renewable capacity, leveraging existing infrastructure rather than building new plants. The company conducted a competitive tender process to select suppliers with proven global expertise in large-scale hydroelectric projects.

The expansion relies on multiple contractors beyond the Chinese consortium. Brazilian engineering firm SEEL won the civil works package, Tractebel Engineering will provide owner’s engineering services, and Egis Group manages the environmental compliance program. The division of responsibilities reflects SPIC Brasil’s strategy to combine international equipment suppliers with local execution capacity.

São Simão’s expansion represents a growing trend in Brazilian hydropower to maximize output from existing facilities. The plant currently operates six generating units and retains space for three additional units beyond the seventh now under contract. The facility supplies approximately six million homes under current configuration.

The March 2026 capacity auction introduced a product specifically designed for expansions of existing plants, offering long-term revenue certainty to incentivize brownfield projects. SPIC Brasil’s contracted revenue of R$349.9 million per year provides stable cash flow independent of energy market prices, supported by power availability payments from the national grid operator. The company manages a total portfolio of 5.6 GW installed capacity across Brazil.

Dongfang Electric Brazil CEO Li Yage stated the Francis turbine technology has been deployed in hundreds of similar projects globally, while CGGC Brazil CEO Ricardo Shang emphasized the company’s track record executing major infrastructure works in Brazil. The 2030 timeline aligns with the contracted supply start date established in the capacity auction mechanism.