Hydroelectric Serra do Facão

Serra do Facão

Located on the São Marcos River on the border between the States of Goiás and Minas Gerais, the Serra do Facão Hydroelectric Power Station started being built in 2006. The development, which is the responsibility of Serra do Facão Energia S.A. (SEFAC), a company formed by Furnas Centrais Elétricas S.A., Alcoa Alumínio S.A., Camargo Corrêa Energia and DME Energética, took some three years to complete and investments of R$ 1.063 billion.

On July 13, 2010, SEFAC started operating commercially. The use concession of this water resource for producing electricity was acquired at an auction arranged by Agência Nacional de Energia Elétrica (ANEEL) on July 12, 2002, in the Rio de Janeiro Stock Exchange.

Alcoa has a 34.97% share in the SEFAC consortium. The other members are: Furnas Centrais Elétricas S.A. (49.47%); DME Energética (10.9%) and Camargo Corrêa Energia (5.47%).

The Serra do Facão Hydropower Station reservoir covers an area of 227 km2 and partially affects areas in five municipalities in Goias (Catalão, 72.8%; Campo Alegre de Goiás, 22.4%; Cristalina, 0.6%; Davinópolis, 0.4% and Ipameri, 0.1%) and one in Minas Gerais (Paracatu, 3.7%).

During construction the development generated 4,800 jobs, of which 1,600 were direct and 3,200 indirect. The energy produced by the Serra do Facão Hydropower Station ,with installed capacity of 210 MW, is incorporated into the national grid system (SIN) and distributed all over Brazil. It is used by consortium members as and when necessary.

The Environmental Impact Study (EIA) of the Serra do Facão power station project was presented to the Brazilian Institute of the Environment and Natural Renewable Resources (IBAMA) and widely debated in several public hearings held in municipalities in the area affected by the development. The commitments and improvement proposals presented in the EIA were validated during the hearings, making it possible to obtain the Preliminary License in April 2002, a document that affirmed the project’s environmental feasibility.

In September 2006, IBAMA renewed the Installation License, which allowed for the construction of the Serra do Facão Power Station. In November 2009, it obtained its Operating License which is valid until November 2013.