Plan is to update, renew transmission assets in different parts of Brazil
09/04/2024
Equipment manufacturer Siemens Energy signed four contracts with Eletrobras amounting to over R$300 million for updating transmission assets in several Brazilian states. The plan is to renew depreciated assets or those that have reached the end of their useful life.
Siemens Energy’s vice president for Latin America, André Clark, said the Brazilian system is reliable but has been operating for several decades and needs some repair and improvement. Furthermore, with climate events such as drought and heavy rains, combined with the expansion of intermittent renewable energy sources (wind and solar) in Brazil’s power mix, it is necessary to make an effort towards the grid’s resilience.
“The system was designed when there was only one type of supply and demand, stably, in a one-dimensional electrical system, without the extreme weather events we are currently experiencing,” he said. “We are facing new system operation barriers, a more adverse environment with further climate change, and changes in the demand and supply profile.”
In August, Brazil faced three blackouts in ten days. In one of the events, a kite caused the blackout, which raised fears among experts about the grid’s vulnerability. Mr. Clark emphasizes that the system is reliable but recognizes that adjustments to the current reality are required.
The investment is part of a project to improve transmission services, required by the Brazilian Electricity Regulatory Agency (ANEEL) to meet the conditions of regularity, continuity, efficiency, and safety. The agreements include clauses requiring transmission companies to carry out works to replace assets at the end of their useful life. Consumers pay for the improvements, as the amount is returned to the company through an increase in Allowed Annual Revenues (RAP).
The energy transmission segment has been increasing revenues for manufacturers in Brazil, not only with the update of structures but also with the construction of new projects following auctions. Under Siemens Energy’s total revenue in Brazil, the area of grid technologies accounts for 61%. In fiscal year 2023, this share was 45%.
According to Eletrobras’s vice president of engineering, Robson Campos, deliveries will start in 2024 and continue until the end of 2026. “Brazilian regulations encourage this type of investment and all major transmission companies invest heavily. Eletrobras has a planned investment of R$3.3 billion in improvements for 2024. These contracts with Siemens Energy represent less than 10% of what we will invest.”
Among the projects, is the update of the Grajaú substation, responsible for almost 40% of the energy supply in the city of Rio de Janeiro. In the Northeast region, the German company will supply new fixed series capacitor (FSC) banks for the Imperatriz line, in Maranhão, to ensure stability to the power system and increase transmission capacity.
In the states of Maranhão, Pará, Mato Grosso, and Rondônia, the manufacturer will install new circuit breakers to protect high-voltage assets. In the area of the Madeira River, known as “Linhão do Madeira,” Siemens Energy will provide an online monitoring system for gases dissolved in insulating oil for transformer stations.
*Por Robson Rodrigues — São Paulo
Source: Valor International