The Brazilian holding company of the Chinese State Grid recently obtained the biggest ever electricity transmission line auction in Brazil.
The company won the bid that would see them build, operate power lines spanning 1,500 kilometers. This was followed by the Alupar led consortium to construct power lines spanning 1,100km. Â
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The project’s cost
To construct the 1,513 kilometers of power lines running across Maranhao, Tocantins, and Goias states, along with substations, the company is expected to invest BRL 18.1 billion. Â
It provided a discount close to 40% on lot one’s maximum annual revenue. This would establish and also run power lines running for 1,500 kilometers. State Grid currently operates electricity transmission lines in the largest economy of Latin America.
The bids that won for each lot were based on the biggest discount provided on the annual revenue.
The need for tech expertise as well as large investments dissuaded bidders such as Neoenergia, Isa Cteep and Engie Brasil. As a result, the tender, which was held at Sao Paulo’s stock exchange facility, had little competition.Â
How long will it take to complete construction works on the electricity transmission line?
To build the power line, it would take State Grid six years. The line’s investment amount goes beyond the estimated investment of 54 of the 55 auctions that were initially held by Aneel, an electricity regulator.Â
Increasing the capacity of the interconnection between the regions of North East and Central West is said to be the main aim of the project. This would facilitate the transportation of excess energy from the country’s Northeast region. Â
A field that the Chinese company thrives in, the requirements of the tender were high conversion capacity for the lines as well as substations to transmit electricity from renewable plants.
About the State Grid Corporation of China
13 years ago, Brazil was selected by the State Grid Corporation of China for its significant investment outside Asia. As a result, six Brazilian power transmission companies were acquired by the entity.
Ever since, the company has made an investment of BRL 28 billion in the country. It has undertaken and participated in the establishment of transmission lines exceeding 16,000 kilometers in 13 states.
The Aneel auction also foresees transmission lines worth BRL 21.7 billion, along with other two lots that were offered recently on B3.
