The Spanish electric utility company Iberdrola through its subsidiary Neoenergia has been awarded its largest power grid line project, according to the regulatory agency, National Electricity Agency (Aneel).
Neoenergia won two of the 13 lots offered: one, 1,707km, the longest project offered in the auction, between the states of Minas Gerais and São Paulo, Brazil. The company also won the 291km contract in the state of Mato Grosso do Sul.
According to the regulator, the investment in these projects will amount to around €1 billion ($1 billion) and will create more than 11,000 jobs during construction.
The project aims to expand the transmission capacity of the northern region of Minas Gerais, to accommodate the renewable energy generated in the region.
The larger project consists of three 500kV lines, plus a 440kV line. A new 500kV New Bridge 3 substation will also be built.
The second foresees the construction of 291km of lines in nine municipalities in the state of Mato Grosso do Sul, with two 230kV lines and sections and a 230/138kV Paraíso 2 – 2×150 MVA substation.
The objective is the integration of the small hydroelectric power plants Fundãozinho, Areado and Bandeirante and the connection of the distribution in the Paraíso region. The timeframe estimated by the regulator for completion is 48 months and around 1,250 new jobs are expected during construction.
Brazil is one of Iberdrola’s prime growth markets. The company has more than 2,300km of transmission lines in operation in the country, following the completion of the April 2017 auction deliveries.
“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,” stated Eduardo Capelastegui, CEO of Neoenergia.
The deadline granted by the regulator for its construction is 60 months from the signing of the concession contract on 30 September 2022.