Sterlite Power bags six new transmission projects in Brazil

ksenia kondratieva Mumbai | Updated on June 29, 2018

New projects will require another $1-billion capex

Sterlite Power, one of India’s largest private developers of power transmission infrastructure, has won six lots at the transmission auction conducted by Brazil’s Electric Energy Regulator ANEEL on June 28.

ANEEL has auctioned 20 lots totalling 2,562 km of transmission lines and 12,226 MVA [megavolt-ampere] of transformation capacity in sub-stations across 16 states in the country. The transmission projects auctioned will provide investments of around 6 billion Brazilian real ($1.5 billion), ANEEL said in a statement.

The projects auctioned are to be implemented between 2018 and 2022, while the transmission licences awarded will be valid for 30 years. This is the third time the Sterlite Power emerges as one of the winners in Brazil’s transmission lines’ auctions, after it had bagged several projects in the auctions conducted in April and December 2017. These projects would require around $1 billion investment, the company said then.

The new projects won by Sterlite will need another $1 billion capex, the company’s spokesperson told BusinessLine.

The six lots (3,4,7,12,15 and 20) won by the developer in the latest auction translate to a total of 1,859 km of transmission lines, which is more than half of the total auctioned, according to the data available on ANEEL’s website. Sterlite Power won against competition from several consortia led by Brazil’s ENERGISA S.A., China-controlled CPFL Energia, Companhia de Transmissão de Energia Elétrica Paulista (CTEEP), a unit of Colombia's Isa, among other players.

The bid of Sterlite had a discount ranging from 32 per cent to 58 per cent, while the average discount achieved during the auction was 55.26 per cent, ANEEL said.

Pravin Agarwal, Chairman, Sterlite Power, has earlier this year projected Sterlite would invest $4 billion in Brazil by 2022. Apart from Sterlite, several other Indian power transmission companies, including the government-owned Power Grid Corporation of India, Adani Transmission, KEC International have been lately exploring the Brazilian transmission market.

Published on June 29, 2018

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