The Paraíso Small Hydropower Project employs a technology, where a low-level diversion dam raises the water level in the river sufficiently to enable an intake structure to be located on the side of the river. Water from the intake is normally taken through a pipe downhill to a power station constructed downstream of the intake and at as low a level as possible to gain the maximum head on the turbine.

The electric sector in Brazil has been supplied traditionally by 88% large hydropower plants, 8% thermal, 1% small hydropower plants and 3% nuclear. Although the country still possesses a great unexplored hydropower potential, most of the sources are located in the Amazon region, where environmental restrictions impose severe limits for energy exploration. Furthermore, those energy sources are far away from the main consumption centers in the southeast areas of the country.

The project’s objective is to generate electricity to supply the country’s economic growth demands for energy, through the use of sustainable renewable sources. Hydro power as a renewable source of electricity generation makes an important contribution to the overall reduction of carbon emissions. Although most of the electricity generated in Brazil is by (mainly large) hydropower plants, the country’s electricity matrix expansion is moving towards a larger participation of thermal power generation and the government has the intention to increase installed capacity of thermal power plants by 15%.

In the absence of this project, there is a high likelihood the electricity will be generated in fossil fuel-based combustion plants.

The project brings about a number of social and environmental benefits. A run of-river project has a low environmental impact. The expansion of the generation capacity in a sustainable way will develop a better infrastructure, increase the employment rates in the region and raise the tax income.