Small Hydro Schemes (PCHs in Portuguese) represent one of the main priorities of Bioenergy and of the EPE in order to increase the electricity supply in Brazil.

A PCH has of 1 to 30 MW, what is energy enough for the consumption of industries, farms, and cities. It is a potential resource to be explored in large scale, thanks to the reasonable amount of financial resources required, to its agile implementation and its low impact on the environment.

In replacing the usual sources that cause pollution, it contributes to the reduction in the emission of greenhouse gases, thus having right to the sale of carbon credits through the mechanisms implanted by the Kyoto Protocol. Another advantage is the low environmental impact caused by the small size of its reservoirs.

Due to its characteristics, this kind of enterprise makes it easier to supply the energy needs of small towns and rural areas.