Brazil’s Eletrobras to invest $500 million in USA

• 14 years ago (2010-07-30)
• David Flin

North America 1021

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Brazil’s state-controlled power company Eletrobras plans to invest up to $500 million in transmission projects in the USA starting in 2011, according to Eletrobras CEO Jose Antonio Muniz Lopez.

Lopez said that the company is considering partnering with US firms on potential electrical grid interconnection projects, adding that the US government is planning to integrate its electricity grids but that different state laws are holding back the initiative. He said those plans could mean high demand for transmission lines in the USA, a market sector in which Eletrobras has experience. He said that Eletrobras will closely study the alternatives and the profit potential before deciding whether to participate in any of the projects.

“The most prudent thing is to partner with existing companies to gain knowledge of the US market,” Lopez said. He added that Eletrobras will probably use its investment funds to buy stakes in companies with which it will form joint-venture partnerships.

The investment strategy is part of a plan that Eletrobras began by setting up offices in Montevideo and Lima, where the company is negotiating with the Peruvian government on the possible construction of several hyrdoelectric power stations. Eletrobras also plans to open a third office in Central America, probably in Panama.

Lopez said that Eletrobras will give priority in its investment decisions to projects in the Western Hemisphere, mainly Argentina, Peru, Colombia and the USA.