Eletrosul says won transmission lines may encourage wind projects in Rio Grande do Sul

Jun 8, 2012 - Eletrosul, a subsidiary of Brazil's state-owned power holding company Eletrobras (SAO:ELET6), said its recently won transmission facilities are very important for Rio Grande do Sul state, where they will be built, as they could encourage development of wind projects.
Eletrosul, in partnership with Brazil's public utility Companhia Estadual de Energia Eletrica (CEEE), was awarded the most important lot at Wednesday's transmission auction of power sector regulator Aneel, or 490 km (304.5 miles) of 525 kV transmission lines, three new substations and the expansion of one existing substation. According to Eletrosul, the projects will require BRL 710 million (USD 348.7m/EUR 280.1m) investments.
While Rio Grande do Sul is a rather economically underdeveloped region, it has an enormous wind potential. The new facilities will allow this potential's exploration, the engineering director of Eletrosul, Ronaldo Custodio, said.
The challenges in power transmission in Brazil's southernmost region already made EDP Renovaveis Brasil to request a cancellation of a wind power project in Santa Vitoria do Palmar municipality, Rio Grande do Sul, because of its inviability. The group, however, stated that it had not lost interest in the project.

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