China: leads in UHV (ultra-high-voltage) transmission projects
China built its first UHV transmission line in 2007, aiming to ease energy pressure on the country’s commercial center Shanghai and Xiangjiaba, a remote city in southwestern China along the Yangtze River[1]. China has the world’s most UHV direct current lines, more than ten lines are under construction or already in use. UHV technology can transmit electricity over long distances with relatively low loss of power. And China is now exporting this technology. When it comes to transmitting electricity, Brazil has a lot in common with China. Both countries have a vast territory, with energy consumption areas located far away from hydropower resources[2].
In February 2014, a consortium made of 51% shares owned by SGCC and 49% shares owned by Eletrobras won the bid of Brazil’s Belo Monte Hydropower UHV Transmission Project (Phase I, total length 2,084 km, concession period 30 years)[3], [4].. In July 2015, SGCC independently won the bid for 2nd phase of Brazil’s Belo Monte Hydropower UHV Transmission Project (total length 2,518 km, concession period 30 years), outrunning Eletrobras and Spanish firm Abengoa [5].
The First Phase of Belo Monte Hydropower ±800kV UHV DC Transmission Project (Belo Monte I), jointly invested and constructed by Electrobras and State Grid, was put in operation in 2017 (2,076 km delivered with a capacity of 4GW)[6]. The second phase of the Belo Monte UHV power project in Brazil, spanning 2,543 kilometers, is likely to start commercial operations by the third quarter of this year, according to SGCC, the operator of the project[7],[8].
Besides SGCC, Shanghai Electric Group, China Three Gorges Corporation, China Communications Construction Company (CCCC) and Shanghai Pengxin Group Company are also expanding their presence in the country. Among the companies planning to invest in Brazil are China Southern Power Grid, China Huadian Group Corporation, China Huaneng Group Corporation, State Power Investment Corporation (SPIC) and China Guodian Corporation19.
Shanghai Electric Power Transmission and Distribution Engineering (SPTDE), a subsidiary of Shanghai Electric, in June 2017 signed a preliminary agreement with Eletrosul Centrais Elétricas S.A. (Eletrosul), a subsidiary of Eletrobras, to transfer control of transmission system development for the Rio Grande do Sul project. Brazil’s energy regulator Agencia Nacional de Energia Eletrica (ANEEL) awarded the project to Eletrosul during an auction organised in November 2014. The total investment was budgeted at BRL3.27 billion to enable the construction of about 1,900 km of transmission lines and seven substations, as well as the expansion of 16 existing substations. As per Eletrobras, the next stage of the negotiations will establish the detailed conditions of the business, through a binding agreement, including issues related to the implementation and operation schedule. Shanghai Electric will establish an SPE to construct, operate and maintain future projects. Eletrosul is likely to hold up to a 25 per cent interest in the SPE. This agreement with Shanghai Electric is the result of the public call launched by Eletrosul in 2015 for the selection of companies interested in establishing a partnership for the implementation of the auctioned project19.
Other foreign companies
In December 2017, France’s Engie SA, India’s Sterlite Technologies Ltd and Neoenergia SA, majority-owned by Spain’s Iberdrola SA, were among companies that won the right to build transmission lines. The event drew aggressive bidding, averaging 40% below ceiling prices set by regulators. The auction will spur 8.75 billion reais ($2.6 billion) in investment , in line with government expectations[9].
In December 2018, Indian power transmission developer Sterlite Power has won a lot in Brazil’s recent auction for transmission projects that will facilitate the development of Rio Grande do Sul state’s wind potential. Lot 13 represents an investment of about USD 0.6 bllion (EUR 527.4m) over three to five years. It involves the construction of six substations and 316 km (196.35 miles) of transmission lines[10]. The company’s investment in Brazilian transmission sector crosses USD 2bn[11].
Rio Madeira transmission link
Before the 2nd phase of Belo Monte transmission project, the Rio Madeira transmission link, with an overhead length of 2,385km, is the world’s longest power transmission line. The 600kV high-voltage direct current (HVDC) bipolar line was brought into commercial operation in November 2013 and is capable of transmitting 7.1GW of power[12].
The HVDC transmission line was constructed in 24 months by Interligação Elétrica do Madeira (IE Madeira), a consortium comprised of three major Brazilian energy providers. ABB supplied power equipment for three HVDC stations. Alstom supplied two HVDC bi-pole converter stations and four HVDC converter transformers for the project31. (Much of the early work on UHV systems was done by electrical engineering companies such as Siemens and ABB23)
[1] http://www.chinadaily.com.cn/business/2017-09/05/content_31573458.htm
[2] https://www.beltandroad.news/2019/03/17/bri-chinas-state-grid-builds-electricity-super-highway-in-brazil/
[3] http://www.sgcc.com.cn/html/sgcc_mobile_en/col2017113008/2018-07/19/20180719114734472929947_1.shtml
[4] https://www.reuters.com/article/us-china-electricity-grid-kemp/column-super-grid-china-masters-long-distance-power-transmission-idUSKBN0EU19B20140619
[5] http://www.stategrid.com.cn/html/sgid/col1230000133/2015-09/06/20150906143312478205153_1.html
[6] http://www.sgcc.com.cn/html/sgcc_mobile_en/col2017113008/2018-07/18/20180718164057688856936_1.shtml
[7] http://global.chinadaily.com.cn/a/201903/22/WS5c9437e1a3104842260b1eed.html
[8] http://www.xinhuanet.com/english/2019-04/05/c_137952512.htm
[9] https://www.bloomberg.com/news/articles/2017-12-15/after-year-with-none-brazil-holds-three-power-auctions-in-week
[10] https://renewablesnow.com/news/indias-sterlite-wins-wind-lot-in-brazil-transmission-auction-637641/
[11] https://www.sterlitepower.com/press-release/sterlite-power-wins-prestigious-transmission-project-brazil
[12] https://www.power-technology.com/features/featurethe-worlds-longest-power-transmission-lines-4167964/