China’s State Grid Wins Brazil Power Line Tender to Boost Renewable Energy

China’s State Grid Wins Brazil Power Line Tender to Boost Renewable Energy

by  
Jordy Leo  
- December 20, 2023

China’s State Grid Corp, the world’s largest utility company, emerged as the biggest winner in Brazil’s BRL21.7bn (USD4.4bn) auction for transmission lines, as reported by Reuters on December 15. The company secured a bid for the construction and operation of 1,500 kilometers (km) of lines, while a consortium supported by Alupar Investimento SA and Mercury Investments Participacoes SA won contracts to build 1,100 km of power lines. The auction aims to boost the electricity transmission from renewable sources generated in the northeast of Brazil to meet the demand in southern regions. Notably, China’s State Grid offered a substantial discount of nearly 40% on the maximum annual revenue for the initial lot of the construction and operation of 1,500 km of power lines. Currently, the company has 24 transmission concessions and operates more than 16,000 km of power lines in Brazil.

Capitalizing on its abundant solar and hydro energy resources, Brazil generates more than 90% of its electricity from renewable sources. The country envisions further integration of renewable energy into its power grid to achieve a transition to low-carbon economy. In addition, it aims to become a leader in the emerging green hydrogen economy, a goal requiring massive renewable power and robust power transmission infrastructure. The recent auction marks Brazil’s largest auction to date for power lines, following a similar one in June, where BRL15.7bn (USD3.2bn) in contracts were awarded. The next auction for power lines is scheduled for March 2024.

Sources:

https://www.reuters.com/business/energy/chinas-state-grid-wins-largest-batch-brazils-power-transmission-lines-auction-2023-12-15/

https://www.bloomberg.com/news/articles/2023-12-15/state-grid-leads-in-brazil-s-4-4-billion-power-line-auction

https://www.bloomberg.com/news/features/2023-06-29/brazil-aims-for-green-hydrogen-market-fueled-by-wind-energy

http://world.people.com.cn/n1/2023/1216/c1002-40140354.html

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