BRAZIL - Through its subsidiary Neoenergia, Iberdrola has been chosen by the Agência Nacional de Energia Elétrica (ANEEL) to build a 500 kV substation in the state of Minas Gerais.

The Iberdrola group has been awarded the construction and commissioning of a substation that will be located in Ibiraci, state of Minas Gerais.

The award has been granted by the Agência Nacional de Energia Elétrica (ANEEL), regulator of the electricity system of Brazil, in an international tender with the aim of attracting investments to improve and expand the country's transmission networks.

The project is composed of the 500 kV Estreito substation and has three synchronous compensators -300/+300 MVAR. The facility should provide greater reliability and operational flexibility in critical scenarios of high energy import by the southeast region, in addition to guaranteeing voltage control in São Paulo's high and medium voltage system.

Following the company's strategy, the investment, estimated at around $116.7 million, represents a significant increase in revenue generation and expands the company's area of action strategically in the southeast region, Iberdrola said in a press release.

The maximum period for entry into commercial operation established by ANEEL is 48 months, to be met in March 2026, although this period is expected to be advanced.

Source: Iberdrola