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Isolux Corsán tightens grip on Brazilian power lines

The Spanish developer’s concessions arm has been awarded a further 247km of transmission lines in Brazil, where it has over 3,000km of transmission lines in total. The 30-year concession is expected to involve capital expenditure of almost €130m and deliver annual revenues of nearly €12m.

Isolux Infrastructure, the concessions arm of Spanish developer Isolux Corsán, has been awarded a further 247 kilometres of Brazilian transmission lines at an auction held by the country’s National Energy Authority (ANEEL) at the headquarters of the Bovespa Stock Exchange in São Paolo.

The award relates to power transmission lines running from Taubaté to Nova Iguaçu (straddling the states of Rio de Janeiro and São Paolo) and sub-stations in Nova Iguacu in the state of Rio de Janeiro. The new transmission line and sub-stations will form part of the Cachoeira Paulista grid, which is already operated by Isolux Corsán.

The new concession has a total capital expenditure (capex) of close to R$300 million (€129 million; $183 million), and a maximum of 26 months to come into operation. It is expected to produce annual revenues of €11.99 million, and the concession agreement lasts for 30 years.

The latest concession means that Isolux Infrastructure now has 5,447 kilometres (km) of transmission lines globally, with the largest contributor to this total being Brazil (3,032 km in five projects).

Isolux Infrastructure was formed in July this year when Isolux Corsán decided to unify all its worldwide concessions operations into one business. The business has a total capital expenditure of €7.5 billion for all the projects in which it is currently involved. Last month, Isolux Corsán said it was studying the possibility of listing Isolux Infrastructure on the Brazilian Stock Exchange.  

The firm’s concessions – which aim to balance exposure to emerging markets and consolidated economies – span toll roads, transmission and distribution lines and photovoltaic solar power. Target markets include India, Brazil, Mexico, Peru, the US, Italy and Spain.