Sterlite Power Wins 6 New Transmission Projects in Brazil(14:07 Hrs. IST)
MUMBAI, India, July 12, 2018 /PRNewswire/ --The company emerges as the first Indian company to invest close to USD 2 bn in Brazilian power transmission sector Projects entails 23 sub stations; 2,000 CKM of lines and 5,500 MVA of transformation capacity
In the recently concluded auction for transmission projects in Brazil, Sterlite Power emerged as the largest winner, clinching 6 lots at an investment of roughly USD 1 bn, securing about 65% of the capex under auction. These critical projects will largely help move renewable power from northern and north eastern parts of Brazil with southern and south eastern regions where the load centers are located. By 2026, the total electricity consumption of the country is forecasted to increase to 741 TWh, indicating an average annual growth of 3.7% per annum. To cater to this jump in demand, a 64.1 GW expansion in installed capacity of the National Interconnected System (SIN) is planned over the next 10-year period.
Talking about Brazil and company's investment in the region, the Group CEO of Sterlite Power, Pratik Agarwal, said, "Brazil requires an incremental 61,800 km in transmission lines, and an increase of 199,200 MVA capacity. This makes the market very attractive to us and we have already committed ~USD 1.7 bn of the planned USD 4 bn in the region. We intend to develop global partnerships to execute our global portfolio of projects."
Brazilian power sector is characterised with policy and regulatory maturity. Given the strong contractual framework, including long concession tenures (30 years), inflation-protected revenues (which help lower the forex risk), and auction-based bidding for projects which happen on a pre-announced cadence, the Brazil market presents an ideal setup for any private transmission player.
About Sterlite Power
Sterlite Power is a leading global developer of power transmission infrastructure with projects of over 12,000 circuit kms and 20,500 MVA in India and Brazil. With an industry-leading portfolio of power conductors, EHV cables and OPGW, Sterlite Power also offers solutions for upgrading, uprating and strengthening existing networks. The Company has set new benchmarks in the industry by use of cutting-edge technologies and innovative financing. Sterlite Power is also the sponsor of IndiGrid, India's first power sector Infrastructure Investment Trust ("InvIT"), listed on the BSE and NSE.
For more details, visit: www.sterlitepower.com