The contract will create around 5,000 direct jobs for the construction phase, and help meet the demand for the flow of renewable energy generated in the Northeast region, to the Southeast region of the country
ENGIE strengthens its power transmission activity in Brazil. (Credit: ENGIE)
ENGIE has won a new concession contract for the construction of 1,006km of electric power transmission lines in the Brazilian states of Bahia, Minas Gerais and Espírito Santo.
The French utility company’s bid for lot 5 has been finalised in the auction organised by Brazil’s Electric Energy Agency (ANEEL).
The winning bid offered a final Annual Permitted Revenue (RAP) of R$249.3m ($13.4m).
Under the 30-year contract, Engie will provide engineering, construction, operation, and maintenance for four transmission lines, each with 500kV capacity.
The new transmission lines will run between Morro do Chapéu and Poções, Poções and Medeiros Neto, Medeiros Neto and João Neiva and João Neiva and Viana.
ENGIE said that the contract will help meet the demand for the flow of renewable energy generated in the Northeast region, to the Southeast region of the country.
The contract will also create around 5,000 direct jobs for the construction phase, strengthening its presence in the country, said the company.
ENGIE executive vice president networks activities in charge Cécile Prévieu said: “This success is an important step in the development of ENGIE’s electric power transmission activities. It also reinforces our position in Brazil, a key country for the Group for over 25 years.
“While contributing to the security of supply and resilience of the country’s energy system, this project will also enable better integration of renewable energies, thereby helping to accelerate the energy transition.”
ENGIE operates a total of nearly 6,000km of power transmission networks in Brazil and Chile, and installed more than 2,700km of new transmission lines in Brazil, since 2017.
The new contract will strengthen its position in Latin America’s electricity infrastructure sector and supports the growth of the electric power transmission network in Brazil, said ENGIE.
Last month, ENGIE and investment company Meridiam signed an agreement with Actis to fully acquire South Africa-based BTE Renewables for $1bn.
BTE Renewables is a developer, owner, and operator of renewable assets on the African continent, with an operating presence in South Africa and Kenya.