The India-based power transmission company prevailed in the Brazilian Government’s transmission auction with the project it won representing a third of the total auction value.
Sterlite Power will execute the new transmission project in northern Brazil in Pará and Tocantins states.
A part of the North-Southeast and North-Northeast interconnections, the project is said to be critical for transmitting the power generated by the 11.3GW Belo Monte Hydroelectric Power Plant at the Xingu River.
According to Sterlite Power, the transmission project will boost the reliability of the electricity system in the northern region of Brazil. Besides, it has the potential to provide over 5,500 job opportunities as per the National Electric Energy Agency (ANEEL) which held the auction.
Sterlite Power’s bid featured a 35.72% discount over the maximum annual revenue proposed. The company said that its offer was one of the lowest discounts of the transmission auction.
ANEEL stated: “The average discount was 40.46%, which means that the income of the entrepreneurs to exploit the investments will be lower than initially expected, which contributes to a low energy tariff.
“The largest negative goodwill was recorded in lot 5, 53.94%.”
In an earlier auction held in April, Sterlite had secured two projects. Through the new project, Sterlite has expanded its presence in Brazil which has reached a total investment of $1bn.
Sterlite Power chairman Pravin Agarwal said: “Sterlite has demonstrated its international competitiveness by winning the largest lot on offer in the auction.
“We are committed to building a global transmission company by focusing on talent, technology and innovation.”
ANEEL had auctioned 4,919km of transmission lines across 10 states in the country. The Brazilian electricity regulator succeeded in selling 11 lots which represent R$ 8.7bn ($2.64bn) in transmission investments.
