Brazilian Ministry of Mines and Energy and State Grid Signed Commercial Operation License

Brazilian Ministry of Mines and Energy and State Grid Signed Commercial Operation License

On the afternoon of October 25, 2019, under the witness of Chinese President Xi Jinping and Brazilian President Bolsonaro, Brazilian Minister of Mines and Energy Bento Albuquerque and State Grid Executive Chairman Kou Wei signed the commercial operation license for the Phase II of Brazilian Belo Monte Hydropower +-800kV UHV DC Transmission Project at the Great Hall of the People in Beijing, marking the commercial operation of the project.

In September 2017, also witnessed by President Xi Jinping and his Brazilian counterpart, Brazilian Ministry of Mines and Energy issued the construction license of the project to State Grid. With a 30 years of concession and a total investment of BRL9.6 billion, the project possesses transmission lines of 2,539 km, making it a +-800kV UHV DC project with the longest transmission distance in the world. Its construction and commissioning have been completed ahead of schedule on October 16 of the local time.

Delivering power from Brazil's second largest hydropower plant - Belo Monte Hydropower Station, the project is interconnecting the north and south grids of the country. Together with the Phase I, it will transmit the clean hydropower from the Amazon area in northern Brazil to southeast load centers. It is a major step of State Grid to promote the “Belt and Road” Initiative. Under the principle of extensive consultation, joint contribution and shared benefits, State Grid, resorting to localized construction and operation, is committed to mutual benefit and common development of China and Brazil. It also delivered real benefit to the local people by creating new jobs and increasing revenues. Meanwhile, the project is the first UHV project independently invested, constructed and operated by China, advancing development of the whole industry chain and whole value chain. Chinese high-end electrical equipment including UHV converter transformers, converter valves and control and protection devices were exported to Brazil, valued at nearly 5 billion yuan.

Adhering to sustainable development in Brazil, State Grid strictly fulfills its environmental responsibilities and attaches great importance to the social welfare. In 2019, State Grid Brazil Holding S.A. (SGBH) was awarded the "Brazilian Social Environmental Management Best Practice Award" by UN Global Impact for this project, establishing State Grid’s image as a technology-driven responsible Chinese enterprise.

The project has been put into operation in a safe and quality manner, addressing challenges in clean hydropower out-sending in the Amazon area. As a Chinese solution to ensure energy security of the country, it provides strong supports and services for local economic and social development. Following the principle of seeking shared growth through extensive consultation and joint contribution, the project enables the "going global" of investment, construction and operation. As the latest landmark project along the "Belt and Road", it has become a golden name card of win-win cooperation in trade and economy between China and Brazil.