The Brazilian National Electric Energy Agency (Aneel) has awarded China State Grid Corporation (SGCC) the concession to build and operate the second transmission line for the Belo Monte hydroelectric dam. The dam is the world's third largest (11.2 GW) and is under construction in the Brazilian Amazon.
The 2,250 km transmission line will have a transmission capacity of 7,800 MW and will be operational from 2019. It will connect the Belo Monte dam to the metropolitan area of Rio de Janeiro through five states and is estimated to require an investment amount of Rs7bn (US$2.2bn).
SGCC will operate the line during 30 years. The company will receive an annual compensation of R$988m (US$310m), which is 19% lower the cap established by the regulator in the tender. The second proposal, made by the Spanish Abengoa, was priced 14% below the cap price set by Aneel.
SGCC was awarded last year the construction of the first transmission line in a consortium with Brazilian companies.