São Paulo - Minas Gerais power line
1,700 kilometres of power line in Brazil: Our largest grid project in the world
Smart Grids Brazil Iberdrola projects
The new electric power line between the states of São Paulo and Minas Gerais, with a length of more than 1,700 kilometres, is Iberdrola's largest grid project in the world. An award that reaffirms the group's expansion in the electricity distribution and transmission segment and consolidates its commitment to the South American country.
São Paulo-Minas Gerais power line
Iberdrola, through its Brazilian subsidiary Neoenergia, acquires at auction in 2022 the concession for the construction of 1,707 kilometres of electrical grid between the north of Minas Gerais and the state of São Paulo, which will be its largest power grid line in the world.
The mega-construction project aims to expand the power line capacity of the northern region of Minas Gerais, so that part of the renewable energy generated there can be transported to the neighbouring state of São Paulo. The new power grid, scheduled to come on stream in September 2027, will have four high-voltage lines, three of them at 500 kV and one line at 440 kV, as well as the new 500 kV New Bridge 3 substation.
The second foresees the construction of 291 kilometres of lines in the state of Mato Grosso do Sul, with two 230 kV lines and a 230/138 kV substation. The objective is the integration of the small hydroelectric power plants Fundãozinho, Areado and Bandeirante and the connection of the distribution in the Paraíso region.
The timeframe estimated by the regulator for completion is 60 months. Both projects involves an estimated investment of €1 billion and the creation of more than 11,000 jobs.
The acquisition of this important contract in the Brazilian market reinforces the Iberdrola group's expansion in the renewable energy transmission grids segment and consolidates our commitment to the South American country, where we already have more than 2,300 kilometres of electric power transmission lines in operation and another 4,000 under construction.
Iberdrola, a world leader in smart grids
Smart grids are essential for our renewable energy to reach consumers safely and efficiently in any country in the world. At Iberdrola, we operate one of the most important distribution systems in the world and we continue to work on its modernisation, digitalisation and automation.
For this reason, in our Strategic Plan, we are focusing on smart grids in addition to renewable energies. To sum up, the company plans to invest €21.5bn in grids in the United States, the United Kingdom, Brazil and Spain, which represents 60% of net investment.
Green light for the electricity superhighway
Ofgem, the UK regulatory authority, has given the green light for the Eastern Green Link 1 project in November 2024. This news comes at a time when SP Energy Networks' Branxton substation has been given the go-ahead.
This substation will connect both the Eastern Green Link 1 project and a proposed offshore wind farm in the area. Work at Branxton, East Lothian, will begin in 2025.
Eastern Green Link 1 is part of a multi-million pound investment in the UK's transmission infrastructure, providing routes for new green electricity from offshore wind farms to travel across the UK to connect to homes and businesses. Without this investment, there will be no way to transport the significant amount of clean electricity that the UK hopes to build in the North Sea to electricity users.
Contracts worth around £1.8 B have been awarded to carry out the project, including £750 M with Prysmian Group to supply the UK's first 525 kV HVDC power transmission cable.
The contracts are expected to give a significant economic boost to the UK during construction, with major works and components to be supplied by UK-based industries.
SP Energy Networks and National Grid Electricity Transmission already own and operate the Western Link, the world's largest capacity and one of the longest submarine cables, connecting Hunterston in Scotland to Connah's Quay in Wales. Operational since 2017, the link created more than 450 jobs during planning and development and has transmitted more than 30,000 GWh of electricity during its first five years of operation, enough to power every home in Wales during that same period.
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