Chinese group negotiating with Electrobras to bid in power generation auctions in Brazil

15 October 2010

Brasilia, Brazil, 15 Oct – Chinese state electricity company State Grid is negotiating a partnership with Brazil’s Electrobras to take part in public energy auctions in Brazil, the director general of the National Electrical Energy Agency (Aneel), Nelson Hubner said in Beijing Thursday.

Speaking to Brazilian newspaper O Estado de São Paulo in the Chinese capital to which he travelled on a working visit, Hubner noted that the Chinese group had entered the Brazilian market this year with the acquisition of seven transmission line for US$1.73 billion.

Hubner said that the acquisition had been a way for State Grid to discover the Brazilian market, how its bureaucracy worked as well as the legislation that applies to the sector, as Aneel had received a letter of intent from the Chinese group saying it planned to stay in Brazil for the long term.

On the Brazilian side, the director general of Aneel said, there was interest in attracting Chinese investment to increase the sector’s investment capacity and competition in the supply of equipment such as large turbines, which are now mainly bought from European manufacturers.

Hubner told the paper that he had suggested the Chinese partner Brazilian companies for production of that equipment in Brazil and cited the case of Weg, from the Brazilian state of Santa Catarina, as a strong candidate to compete in this segment. (macauhub)