The Diplomat
Iberdrola has been awarded the construction of a 500,000-volt substation in the state of Minas Gerais in Brazil, with an investment of some 103 million euros, the company announced yesterday.
The substation, which has been awarded by the Agência Nacional de Energia Elétrica (ANEEL), Brazil’s electricity system regulator, will be located in Ibiraci.
In the international tender, launched to attract investment to upgrade and expand the country’s transmission networks, the award prices were, on average, 66% lower than those expected by the market, Iberdrola said.
The substation will provide greater reliability and operational flexibility in critical scenarios of high energy imports by the southeast region, as well as guaranteeing voltage control in Sao Paulo’s high and medium voltage system.
The maximum timeframe established for the substation to enter commercial operation is 48 months, to be completed by March 2026, although Iberdrola expects this deadline to be brought forward.
The company said the investment will increase its revenue generation and expand its area of operation in the southeast region of the country.
During the construction of the substation, 1,700 direct jobs and numerous indirect jobs will be created.
Iberdrola, through its subsidiary Neoenergia, manages a distribution network of 540,417 kilometres in Brazil, covering a population of 34 million people.
In addition, Neoenergia has more than 3,730.3 megawatts (MW) of renewable energy in operation and provides electricity service to 15.7 million customers.
