Brazil signs historic energy agreement with China’s State Grid Corp
Photo: X Alexandre Silveira’s account.
Brazil has signed the largest energy contract in the country’s history with the Chinese multinational China State Grid.
At a ceremony held in Brasilia, Brazil’s Minister of Mines and Energy, Alexandre Silveira, announced the agreement – which is the result of an auction held in December last year in which China State Grid secured a lot valued at US $3.6 billion, for the construction of a 1.5 thousand kilometer park that will cross the Brazilian states of Maranhão, Tocantins and Goiás.
The project, with a total value of US $3,462 million, entails the construction of 1,513 km of direct current transmission lines, and its development is expected to take place over a period of 72 months.
In addition to the contract with State Grid, agreements were signed for two other smaller lots awarded to Brazilian companies, consolidating a total investment of approximately US$4,340 million and the installation of 4,471 kilometers of transmission lines, with the purpose of strengthening the country’s interconnection and promoting the energy transition.
State Grid is also set to invest another US$40 billion in Brazil over the course of the coming years, covering transmission, production, distribution and renewable sources, as well as strategic mining projects for the energy transition.
This agreement is in addition to the recent collaboration between BYD, a leading Chinese electric vehicle company, and Raízen, a major Brazilian energy company. The two companies recently signed an agreement for the construction of solar plants and the installation of charging points for electric vehicles. This initiative complements the agreement between Brazil and State Grid Corporation, thus reinforcing the Chinese presence in the Brazilian energy sector.
The advances in Chinese energy investments in Brazil reflect the Brazilian government’s drive towards greater energy security and transition, taking advantage of the potential of the northeast of the country as a major generator of renewable energy.
Main source:
Brasil y china State Grid firmaron histórico contrato de transmisión de energía | América Economía (2024, abril 4). https://www.americaeconomia.com/negocios-e-industrias/brasil-y-china-state-grid-firmaron-historico-contrato-de-transmision-d
Other related sources:
China State Grid planea invertir US$ 39.000 millones más en Brasil | DF Sud (2024, abril 3)
https://dfsud.com/america/china-state-grid-planea-invertir-us-39-000-millones-mas-en-brasil
Empresa chinesa tem planos de investir mais de R$ 200 bi no Brasil, anuncia ministro | RBA (2024, abril 3)