Iberdrola, through its subsidiary Neoenergia, has prevailed in an auction held by Brazil’s National Electricity Agency (Aneel) for constructing a 1,700km long transmission line.
The power grid line will be laid between the Brazilian states of Minas Gerais and São Paulo.
Additionally, Neoenergia secured a contract for constructing 291km long power transmission lines in another Brazilian state, Mato Grosso do Sul.
According to Aneel, the investment in the two transmission projects comes to BRL5.5bn (€1bn). The projects are expected to generate over 11,000 jobs during construction.
Neoenergia future CEO Eduardo Capelastegui said: “The acquisition of the assets reinforces Neoenergia’s expansion in the transmission segment and consolidates the company’s commitment to the development of the country’s electricity sector.
“We have a relevant role in the execution of the transmission project in the last five years that strengthens us in this market. The excellent partnerships with construction companies and suppliers allow us to achieve very favourable conditions.”
Iberdrola said that the aim of the 1,707km project is to increase the transmission capacity of the northern region of Minas Gerais to facilitate the flow of energy produced by renewable sources.
The project will have three 500kV lines and a 440 kV line. The company’s subsidiary will also construct the new 500kV New Bridge 3 substation as part of the project.
The deadline granted by Aneel for constructing the project is 60 months from the signing of the concession contract, which will take place on 30 September 2022.
Under the second project, Neoenergia will build 291km of lines across nine municipalities in Mato Grosso do Sul. The project includes two 230kV lines and sections along with a 230/138 kV Paraíso 2 – 2×150 MVA substation.
The goal of the smaller transmission project is the integration of the Fundãozinho, Areado, and Bandeirante hydroelectric power plants and the connection of the distribution in Paraíso. Aneel expects the project to be completed in 48 months.
