September 14, 2017 / 6:01 PM / 2 months ago

CPFL seeking to expand in Brazil's power transmission sector

SAO PAULO, Sept 14 (Reuters) - CPFL Energia SA, Brazil’s largest private electricity company, wants to grow its power transmission business, including by bidding in coming rounds for new licenses to build and operate lines, a company executive told Reuters.

The company, which is controlled by State Grid Corp of China, the world’s largest electricity utility, plans to bid for lines to be built near areas where it operates in Brazil, such as in Sao Paulo state and the Northeast region.

“Part of the company’s strategy is to evaluate and to boost investments in this type of asset,” Fernando Mano, head of the company’s power generation arm CPFL Geração de Energia SA , told Reuters.

He spoke ahead of the inauguration of the Morro Agudo transmission line, a 100 million reais ($31.97 million) project, in Sao Paulo state on Thursday.

CPFL Geração is in charge of dealing with power transmission lines. CPFL also controls CPFL Energias Renováveis SA , the company’s arm for wind and solar power stations.

State Grid bought a controlling stake in CPFL in January for 17.36 billion reais ($5.55 billion), and later announced plans to acquire the remainder of the company and delist it.

“The company is interested in what we call ‘transmission niche.’ Not in building large lines, but to take part in projects that would have synergies with our power distribution firms or our power plants,” Mano said.

He said the company is evaluating other opportunities in the power sector in Brazil, such as the upcoming auctions for Cemig hydroelectric dams and the privatization of Companhia Energética de Sao Paulo, but no decisions have been made yet.

$1 = 3.1277 reais Reporting by Luciano Costa; Writing by Marcelo Teixeira; Editing by Leslie Adler

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below