SAO PAULO, Dec 17 (Reuters): China's State Grid emerged as the big winner in Brazil's largest-ever electricity transmission line auction on Friday, snapping up the largest batch of projects up for grabs.
State Grid won a bid to build and operate 1,500 kilometers of lines, followed by a consortium led by Alupar to build 1,100 km of power lines.
The auction is the second of a series of tenders planned by the government of President Luiz Inacio Lula da Silva to increase the electricity transmitted from renewable sources generated in the northeast of the country to demand from southern sources. The northeast boasts both abundant sunshine and wind.
"These lines will allow the northeast to continue to be the new frontier for the development of renewable energy in Brazil," said Sandoval Feitosa, head of electricity regulator Aneel, in a statement.
State Grid, which only operates transmission lines in Latin America's largest economy, offered a discount of nearly 40 per cent on the first lot's maximum annual revenue to build and operate 1,500 kilometers of lines.
The winning bids for each lot were determined by the largest discount offered on the annual revenue, paid once facilities start operations.
Chinese firm wins Brazil power line tender to boost green energy
FE Team | Published: December 17, 2023 21:47:56
Chinese firm wins Brazil power line tender to boost green energy
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