State Grid wins tender of power transmission concession in Brazil

On April 20 Brazil local time, the Agência Nacional de Energia Elétrica (ANEEL) officially announced its decision to grant the tender of Lot 1 of the No.001/2020 power transmission concession to State Grid Brazil Holding (SGBH). This is another tender won by State Grid in the power transmission market of Brazil with its reliable technology and standard operation, which earned high recognition from the local market and regulator.

The project, with a 30-year concession, comprises 500kV transmission lines of 198km, one new 500kV substation, and extension of another 500kV substation. At the same time, the project is of strategic significance as its new substation is at the receiving end of Brazil's third ±800kV UHV DC Transmission Project, which, scheduled to offer bid in 2022, is to supply power to Brazil's capital Brasilia. Adjacent to SGBH's existing power transmission asset, the project will give State Grid a head-start in participating in another overseas UHV project with the "invest-build-operate" integrated mode. SGBH will be responsible for investment and operation while China Electric Power Equipment and Technology Co., Ltd. and Xinjiang Power Transmission & Transformation Co., Ltd. for construction, facilitating Chinese technologies, equipment, engineering and services to go global, thus forging a sound synergy.

While conducting business overseas, State Grid attaches importance to profitability and efficiency, refrains from malignant competition, makes scientific investment decisions, and plays in a fair ground. The company has become increasingly competitive by upholding market-oriented and standard operation to play by the rules of the market, and strengthened risk prevention and control. This power transmission bidding faced fierce competition. Though SGBH once lagged behind, the Brazilian Ministry of Mines and Energy and ANEEL both agreed for it to take over Lot 1 at its bidding price, as the initial winner was disqualified for not having met documentary requirements. This manifested that the Brazilian government and regulator fully recognize and trust State Grid's overall strengths. Through its decade-long presence and endeavors in the country, SGBH has operated grid assets in a sustained and stable way. It successfully invested in, built and operated large power transmission projects such as the Belo Monte Phase I and II, and actively fulfilled its social responsibilities in serving local economic and social development. The company has become a benchmark recognized and respected in Brazil, setting up a sound brand image for State Grid.

The bid winning demonstrates that State Grid fosters sound and quality growth of international business, one of the "four wings" to underpin State Grid's grid business for all-around progress. By giving priority to the big picture, profit contribution, risk prevention and control, and standard operation, its international business has laid a solid foundation by further exploring the international market, better serving and engaging in the Belt and Road construction and establishing the new development paradigm with domestic and international circulation reinforcing each other.