Brazil Smart Grid Deployment: UHV power grid from State Grid Corp

According to the Chinese-language National Business News, State Grid Corporation completed another Brazil smart grid deployment contract to create an ultra-high voltage grid with Eletrobras, the largest state-owned power grid company in Rio De Janiero, Brazil. The deal was signed on Thursday, July 17, to further expand the company's penetration into the overseas market.

Reports show that State Grid Corp's overseas assets have reached over 100 billion yuan, particularly Brazil, Australia, Portugal, Hong Kong and the Philippines. The latest Brazil smart grid deployment is considered to be a breakthrough for the company, as it marks it first exploit to deploy a UHV grid technology. It has also been reported that Smart Grid Corp also has a similar deal in the works with India, and since 2004, the company has aggressively pushing for global smart grid initiatives, such as acquiring a 25-year power grid in the Philippines, 41% stakes in an Australian power firm, 18% stake in HK Electric Investments, and 100% stake in franchised power grids in Brazil.

The chairman of State Grid Corp, Liu Zhenya and the president of Eletrobras, Jose da Costa Carvalho, closed the deal, which will construct the second largest hydropower plant grid in Brazil. The project, however, will have to pass the environmental impact assessment first, which will be conducted by Brazilian authorities. According to Shanghai's China Business News, the project is expected to generate 18% investment for State Grid Corporation, which is relatively higher than other similar projects in the local market. The company's investment return rate on overseas projects such as the Brazil smart grid deployment has reached 16-18% as opposed to the domestic projects that are only three to five times lower.

Zhenya said that the company will sink thirty to fifty billion US dollars abroad by 2020, raising the overseas shares to 10%. On the other hand, State Grid Corp will also invest 620 billion yuan to build UHV grids within the next five years. In May, State Grid also signed an agreement with Shanghai's Russian Grids for full cooperation in UHV and smart grid deployment. The UHV grid will reach more than 2000 kilometers and will transmit power from the power plant in a drainage basin located in the north to southern, and southeastern regions. These areas are where power generation consumption is high. UHV grids such as this will be beneficial to countries where there is uneven distribution of power generation, according to the Chinese corporation's officials.