The subsidiaries of the Chinese Shanghai Shemar Power and EDP Energias will build and operate new electricity transmission lines in Brazil.
The two companies were, along with Energisa and MEZ Energia from Brazil, the winners of the latest electricity concessions bid by the National Electric Energy Agency (Aneel, regulator), with an extension of 515 kilometers.
The new concessionaires will invest 1.3 billion reais (about USD 260 million) and generate some 3,000 direct jobs.
The new concessionaires agreed to limit their expected annual income to values between 36.59% and 62.80% of the maximum stipulated by the government, which is the criterion for choosing the winner of the auction.
The new lines, which pass through the states of Acre, Mato Grosso, Rio de Janeiro, Rondonia, Sao Paulo and Tocantins, will have to be built in 36-60 months, depending on the requirements of the tender.
Brazil’s minister of Mines and Energy, Bento Albuquerque, said the “auction was an important milestone within the planned set of works on transmission lines for the next ten years, which will require investments of 90 billion reais” (about USD 18 billion dollars).
The construction of new lines gained greater importance due to the severe drought that the country is experiencing, the largest in almost 90 years, which threatens the operation of hydroelectric plants, the country’s main source of energy.
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EDP Energias do Brasil, a subsidiary of EDP Energias de Portugal, obtained the rights to lay a 395-kilometer transmission line between the Amazonian states of Acre and Rondonia and to build a substation in Tucumá.
EDP promised to limit its annual income from the operation of the line to 38.6 million reais (about USD 7.7 million), with a reduction of 36.59% compared to the maximum determined by Aneel.
China’s Shanghai Shemar Powwr Holdigs won the auction for the concession to lay a 100-kilometer transmission line and build a substation in the state of Rio de Janeiro by agreeing to limit its annual revenue to 30.1 million reais (about USD 6 million), a discount of 51.4% compared to the maximum established.
This was the second time that the Chinese company participated in an auction for electricity concessions in Brazil and the first time it was awarded a contract.
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