In the recently concluded auction for transmission projects in Brazil, Sterlite Power emerged as the winner for Lot 13.The project will require an investment of $0.6 billion over the period of next 3-5 years in the state of Rio Grande do Sul, south region of the country. The project involves six substations aggregating 1,544 MVA.
This addition increases the portfolio of Sterlite Power in Brazil to 10 projects, a release from Sterlite Power said. The company’s total investment in the Brazilian power transmission sector now crosses $2 billion.
Talking about Brazil and the company’s investment in the region, the Group CEO of Sterlite Power, Pratik Agarwal said, “We feel proud and honoured to be part of the Brazilian growth story. Our motivation to work on the toughest transmission projects that empower humanity has been the cornerstone of our journey in Brazil. We feel committed to the region and look forward to delivering the new project ahead of schedule”.
Rui Chammas, Sterlite Power CEO in Brazil said, “We are happy to have won this project in the current auction. I must congratulate ANEEL for providing a visible pipeline of projects and for the transparent way of conducting these auctions. Sterlite Power is committed to delivering these projects ahead of schedule by leveraging a network of partners and a top-class local team.”
Brazil’s transmission system needs to add significant capacity to manage the transition in generation footprint: from a hydro and thermal base load to renewable generation.
In July 2018, it may be recalled, Sterlite Power announced that it had emerged as the largest winner, clinching six lots at an investment of roughly $1 billion, in an auction of power transmission concessions in Brazil.
In December 2017, Sterlite Power had won its third concession worth $800 million in Brazil. At that time, Sterlite Power was already involved in two transmission concessions.
Arcoverde project: In a related development, Sterlite Power announced the financial closure of its Arcoverde project in Brazil. This closure was successfully achieved in November 2018. BTG , Santander will be the lead bank for the project. The Arcoverde project was won by Sterlite Power during the auction conducted by Brazil government-owned power utility ANEEL in April 2017 and the concession was signed in August 2017. This project includes building 139 km transmission line, constructing one greenfield and two brownfield substations. With the project clearances in place and land acquisition completed, the project is in advanced stages of completion.
(Featured image is for representation only)
