China’s State Grid Corp plans to invest US$5 billion in Brazil by 2015, where it sees opportunities in all segments of the power sector, said the chairman of the group’s Brazilian subsidiary, Cai Hongxian.
“There are many investment opportunities in generation, transmission and distribution,” said Cai speaking to financial news agency Reuters.
The way in which State Grid will become involved in the power distribution sector in Brazil is not clearly defined, but Cai said, for example, that it may provide consulting services.
The chairman of State Grid Brazil Holding said that changes, which he did not specify, were needed to encourage increased investment in distribution grids in Brazil.
The Chinese group entered the Brazilian market in 2010 when it bought assets from the Plena Emissoras group, and in May of this year it acquired seven power transmission lines from Spanish group ACS.
Cai said that the company planned to take part in the A-5 power auction scheduled for October, which is intended to contract power to be delivered in 2017, which would launch State Grid in production sector in Brazil. (macauhub)