Iberdrola’s subsidiary Neoenergia has won two lots in an auction to build power grid lines in Brazil.

The first lot is of a 1,707km power transmission line to be built between the states of Minas Gerais and São Paulo.

The second project is a 291km contract in Mato Grosso do Sul state.

Out of the 13 lots offered, Neoenergia secured two lots in the auction held last week.

The investment in these two projects will touch around $1.03bn (BRL5.5bn), according to the country’s energy regulator.

During construction phase, these projects will produce more than 11,000 jobs.

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By GlobalData

Neoenergi future CEO Eduardo Capelastegui said: “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.

“We have a relevant role in the execution of the transmission project in the last five years that strengthens us in this market. The excellent partnerships with construction companies and suppliers allow us to achieve very favourable conditions.”

Capelastegui’s role will take effect from 15 July 2022.

The 1,707km project comprises three 500 kV lines and one 440 kV line.

This project aims to expand the transmission capacity in Minas Gerais.

Claimed to Iberdrola’s largest power grid line to be awarded, the deadline given by the regulator for the construction of this project is 60 months from the signing of the concession contract on 30 September 2022.

The second project involves construction of 291km of lines in nine municipalities in the state of Mato Grosso do Sul.

This project will consist of two 230 kV lines and sections and a 230/138 kV Paraíso 2 – 2×150 MVA substation.

The aim of the second project is the integration of small hydroelectric power plants, Fundãozinho, Areado and Bandeirante and the linking of the distribution in the Paraíso region.

This project is estimated to be completed in 48 months.

Iberdrola has over 2,300km of transmission lines in operation in Brazil, after the completion of the April 2017 auction deliveries.

Furthermore, it has 4,000km under construction, distributed in the five regions of Brazil.
Image: Iberdrola wins its largest network project in the world: a 1,700km power line in Brazil. Credit: Iberdrola, S.A.