global transmission report march 2014

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www.globaltransmission.info Global Transmission Report MARCH 2014 VOLUME 6, ISSUE 6 Information and analysis on the global electricity transmission industry INSIDE THIS ISSUE (continued on page 2) (continued on page 4) (continued on page 6) Features Colombia’s Power Sector Plans .................................................... 1 Rehabilitating Afghanistan’s Power Sector ................................ 1 Tanzania’s Grid Expansion Plans ................................................... 1 News North America .................................................................................... 8 Latin America .................................................................................... 14 Asia Pacific ........................................................................................ 17 Europe ................................................................................................. 19 Middle East & Africa ....................................................................... 21 TSO Focus Israel Electric Corporation ............................................................ 22 Policy Review Europe’s Energy and Climate Change Goals ........................... 24 Spotlight Transmission Investment in ASEAN ........................................... 26 Data & Statistics: North America Installed Capacity, Electricity Generation and Consumption 28 Expected Capacity Addition and Consumption ....................... 29 Existing and Expected Growth in Transmission Network ..... 30 Deal Watch .............................................................................................. 31 Project Update ....................................................................................... 31 Company News ...................................................................................... 34 Tenders & Contracts ............................................................................. 37 Colombia’s Power Sector Plans Focus on renewable energy and grid expansion S ound economic policies and promotion of free trade agreements in recent years have helped Colombia maintain a respectable level of economic growth. For the past three years, the country has registered a GDP growth rate of about 4 per cent. Oil exports comprise a significant portion of the country’s GDP. The dependence on oil exports is likely to increase given the country’s target of extracting about 1.6 million barrels of crude oil per day by 2016. Though this oil boom can help the country maintain its economic performance in the short term, the rising global concern over environmental degradation can adversely affect development in the longer run. This highlights the need for the Colombian government to shift its focus towards the country’s large renewable energy potential. Despite having tremendous renewable energy potential, its harness rate has remained very low in the country. Rehabilitating Afghanistan’s Power Sector Focus on increasing energy access and security T hree decades of conflict have greatly damaged Afghanistan’s power infrastructure and today the country has one of the lowest per capita electricity consumption and electrification rates. With the help of donor aid over the last few years, Afghanistan has begun to build its electricity infrastructure and is now slowly moving towards achieving greater energy security. The country has also built a few, and is in the process of building more, cross-border interconnections to import power from its central Asian neighbours. The government has accorded top priority to the development of the energy sector, a key element in fuelling the country’s economic growth. In 2008, the government approved the Afghanistan National Development Strategy (ANDS), which calls for investments in infrastructure, particularly for energy security. Tanzania’s Grid Expansion Plans Aim to meet power demand and link isolated areas T anzania is one of the fastest growing economies in Africa. Fuelled by population growth and economic development, Tanzania’s energy sector is likely to witness significant expansion over the coming years. Also, Tanzania is one of the six partner countries that have been selected by the US government for facilitating the development of their electricity sectors. In July 2013, President Obama announced ‘Power Africa’, a new USD7 billion initiative to double access to electricity in sub-Saharan Africa. The programme aims to help the countries develop newly-discovered resources responsibly, build out power generation and transmission, and expand the reach of mini-grid and off-grid solutions. The other five countries with which the US plans to work with initially are Ethiopia, Ghana, Kenya, Liberia and Nigeria. Tanzania has also formulated an ambitious power sector development plan. The key objectives of the plan are to ensure electricity supply to rural areas, meet future load growth and interlink isolated systems. It also aims to diversify the existing generation mix to reduce the dependence on hydro resources.

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  • www.globaltransmission.info

    Global Transmission ReportMARCH 2014

    VOLUME 6, ISSUE 6

    Information and analysis on the global electricity transmission industry

    INSIDE THIS ISSUE

    (continued on page 2) (continued on page 4)

    (continued on page 6)

    Features Colombias Power Sector Plans .................................................... 1 Rehabilitating Afghanistans Power Sector ................................ 1 Tanzanias Grid Expansion Plans ................................................... 1

    News North America .................................................................................... 8 Latin America .................................................................................... 14 Asia Pacific ........................................................................................ 17 Europe ................................................................................................. 19 Middle East & Africa ....................................................................... 21

    TSO Focus Israel Electric Corporation ............................................................ 22

    Policy Review Europes Energy and Climate Change Goals ........................... 24

    Spotlight Transmission Investment in ASEAN ........................................... 26

    Data & Statistics: North America Installed Capacity, Electricity Generation and Consumption 28 Expected Capacity Addition and Consumption ....................... 29 Existing and Expected Growth in Transmission Network ..... 30

    Deal Watch .............................................................................................. 31Project Update ....................................................................................... 31

    Company News ...................................................................................... 34Tenders & Contracts ............................................................................. 37

    Colombias Power Sector Plans

    Focus on renewable energy and grid expansion

    Sound economic policies and promotion of free tradeagreements in recent years have helped Colombiamaintain a respectable level of economic growth. For the pastthree years, the country has registered a GDP growth rate ofabout 4 per cent. Oil exports comprise a significant portion ofthe countrys GDP.

    The dependence on oil exports is likely to increase giventhe countrys target of extracting about 1.6 million barrels ofcrude oil per day by 2016. Though this oil boom can help thecountry maintain its economic performance in the short term,the rising global concern over environmental degradation canadversely affect development in the longer run.

    This highlights the need for the Colombian government toshift its focus towards the countrys large renewable energypotential. Despite having tremendous renewable energypotential, its harness rate has remained very low in the country.

    Rehabilitating Afghanistans Power Sector

    Focus on increasing energy access and security

    Three decades of conflict have greatly damagedAfghanistans power infrastructure and today the countryhas one of the lowest per capita electricity consumption andelectrification rates. With the help of donor aid over the lastfew years, Afghanistan has begun to build its electricityinfrastructure and is now slowly moving towards achievinggreater energy security. The country has also built a few, andis in the process of building more, cross-borderinterconnections to import power from its central Asianneighbours.

    The government has accorded top priority to thedevelopment of the energy sector, a key element in fuellingthe countrys economic growth. In 2008, the governmentapproved the Afghanistan National Development Strategy(ANDS), which calls for investments in infrastructure,particularly for energy security.

    Tanzanias Grid Expansion Plans

    Aim to meet power demand and link isolated areas

    Tanzania is one of the fastest growing economies in Africa.Fuelled by population growth and economic development,Tanzanias energy sector is likely to witness significantexpansion over the coming years. Also, Tanzania is one of thesix partner countries that have been selected by the USgovernment for facilitating the development of their electricitysectors. In July 2013, President Obama announced PowerAfrica, a new USD7 billion initiative to double access toelectricity in sub-Saharan Africa. The programme aims to helpthe countries develop newly-discovered resourcesresponsibly, build out power generation and transmission, andexpand the reach of mini-grid and off-grid solutions. The otherfive countries with which the US plans to work with initially areEthiopia, Ghana, Kenya, Liberia and Nigeria.

    Tanzania has also formulated an ambitious power sectordevelopment plan. The key objectives of the plan are to ensureelectricity supply to rural areas, meet future load growth andinterlink isolated systems. It also aims to diversify the existinggeneration mix to reduce the dependence on hydro resources.

  • Global Transmission Report | March 20142

    Features

    Colombias Power Sector Plans (Contd...)

    Figure 1: Expected growth in electricity consumption in Colombia (GWh)

    Source: Unidad de Planeacin Minero Energtica

    Although the country meets about 70 per cent of itselectricity requirement through hydro energy, the majority ofthe hydropower potential remains untapped. As per WorldBanks estimates, the country has about 93 GW of hydropotential of which only little more than 9 GW has beenharnessed so far. Wind energy is another abundantly availableform of non-conventional energy in the country. Among allthe South American countries, Colombia has the highest windenergy potential.

    The Guajira Peninsula on the north-eastern tip of thecountry alone has the potential to generate 21 GW of windenergy, enough to meet double the current domestic demand.However, even with this rare wind potential, Colombia has aninstalled capacity of only 19.5 MW, a mere 0.4 percent ofGuajiras potential. The countrys proximity to the equatormakes it an excellent source of solar energy. Apart from beingthe windiest, the northern coast is also the sunniest region ofthe country and receives solar radiation of up to 6 kWh m2 perday, year round.

    Currently, about 78,000 photovoltaic panels have beeninstalled in the country, producing around 6 GW of energy. Butthe majority of the solar potential remains untapped. The largescale agricultural activities in the country also provide asignificant amount of biomass fuel.

    Power demand in the country is rising rapidly with theexpansion of the middle class category consumers. Accordingto energy and mining planning unit Unidad de PlaneacinMinero Energticas (UPME) Plan de Expansion de ReferenciaGeneracionTransmisin 2013-27, electricity demand isexpected to reach 85,091 GWh by 2022 under an average

    growth scenario. This translates to a compound annual growthrate (CAGR) of 3.9 per cent over the period 2013-22. By 2027,consumption is expected to increase further to reach 98,864GWh. Thus, the countrys renewable energy sources are aneffective solution to provide the required impetus to theeconomy in a very sustainable as well as environment friendlymanner.

    Acknowledging this, the government has planned to installmore renewable energy projects. Under its Plan de Expansionde Referencia GeneracionTransmisin 2013-27, UPME hasannounced two alternative capacity addition plans.

    Under the first, Colombia plans to add about 6,569 MW ofcapacity over the period 2014-27. This capacity expansionincludes 5,257 MW of hydro-based capacity, 500 MW of gas-based capacity, 710 MW of coal-based capacity, 88 MW ofliquid-fuel based capacity and 14 MW from cogenerationplants. Under the second alternative, 6,809 MW of capacity,including renewable, has been planned during 2014-27. Thiscapacity includes 5,257 MW of hydro-based, 500 MW of gas-based, 410 MW of coal-based, 300 MW of wind-based, 100 MWof geothermal-based and 88 MW of liquid fuel-based capacity,and 154 MW from cogeneration plants.

    To accommodate this capacity addition, the country hasplanned to add about 1,958 circuit km of transmission lines toits network between 2014 and 2022. Most of these plannedadditions (about 1,742 circuit km) are at the 500 kV level. About216 circuit km of lines are at the 230 kV level. There are alsoplans to reconfigure 44 circuit km of existing lines.

    Power sector overview

    Colombias installed capacity stood at 14,361 MW as of 2012.About 64 per cent of this capacity is accounted for by

  • Global Transmission Report | March 2014 3

    Features

    hydropower plants. Thermal plants contribute about 31 percent with gas-based plants accounting for 15 per cent andcoal-based plants accounting for 7 per cent of the capacity.The balance is contributed by small and cogeneration powerplants. Since 2005, Colombias capacity has grown onlymoderately at a CAGR of 1 per cent. As of October 2013,Colombia had an installed capacity of 14,415 MW.

    In terms of generation mix, in 2012, hydroelectric poweraccounted for 75 per cent and thermal power accounted for 19per cent. The balance 6 per cent was contributed by small andcogeneration plants. For 2013, the total generation in Colombiais estimated to be 62,063 GWh.

    Colombia also exports electricity to Venezuela and Ecuadorand imports a very small volume from Ecuador. In 2012, totalexports from Colombia stood at 714 GWh. Of this, 236 GWhwas exported to Ecuador and 478 GWh to Venezuela. In 2012,imports were only 6.5 GWh. Up to October 2013, Colombiaexported 1,155 GWh and imported 28 GWh of electricity.

    As of 2012, Colombia had a transmission line length of24,392 circuit km. Of this, 14,109 circuit km of lines were a partof Sistema de Transmisin Nacional (STN) or the NationalTransmission System i.e., of 220 kV and above voltage levels.

    Of the total transmission line length, about 10 per cent ofthe lines are at the 500 kV level, 48 per cent are at the 220 kVand 230 kV levels and the remaining 42 per cent are below 220kV but above 110 kV. As of March 2013, the transmission linelength stood at 24,401 circuit km. Colombias transmissionnetwork has shown almost no growth over the last three years.

    Colombia currently has six major cross-border electricityinterconnectionsthree with Venezuela and three withEcuador. The country is a net electricity exporter. Theinterconnections with Venezuela have an aggregate capacityof 336 MW. Two of the interconnections are at 230 kV and oneis at 115 kV.

    With Ecuador, Colombia has electrical interconnectionsunder the Andean International Electricity Transactionsscheme. These interconnections were commissioned underthe Decisin De La Comunidad Andina De Naciones No. 536(Decision 536).

    The purpose of Decision 536 is to develop the energy sectorin the Andean region, to promote the construction anddevelopment of infrastructureincluding power plants andtransmission networks of common useand to create a singleregional transmission system. Two of the interconnections withEcuador are at 230 kV with a combined capacity of 500 MWand one is at 138 kV with a capacity of 35/113 MW.

    Grid expansion plans

    In order to maintain the reliability and stability of the grid withthe higher generation especially from renewable energysources, the government has planned to add 1,958 circuit kmof transmission lines to its network between 2014 and 2022.For its transmission expansion plan, UPME has announced aUSD2 billion investment over the period 2013-27.

    Some of the key projects at the 500 kV level include the 266circuit km long ItuangoPorce IIISogamoso line; the 257circuit km SogamosoNorte line; the 200 circuit km Chin

    Copey line; the 190 circuit km VirginiaNueva Esperanza line;the 183 circuit km La VirginiaAlfrez line; the 158 circuit kmMedellnLa Virginia line; the 131 circuit km Cerro MatosoChin line; the 125 circuit km ItuangoMedelln line; and the110 circuit km ItuangoCerro Matoso line. At the 230 kV level,a 206 circuit km BetaniaMirolindo line is one of the keyprojects.

    Colombia also has plans to develop new interconnectionswith its neighbours. Colombias state-owned power companyInterconexin Elctrica S.A. E.S.P. (ISA), along with theEmpresa de Transmisin Elctrica SA (ETESA) of Panama, isdeveloping the ColombiaPanama electricity transmissioninterconnector. This is a 614 km, high voltage direct current(HVDC) undersea cable project connecting the power gridsof Panama and Colombia. The cable will stretch 274 km withinPanama (234 km on land and 40 km underwater) and 340 kmacross Colombia (325 km on land and 15 km underwater). Itwill connect a substation in Panama City to the Cerro Matososubstation in Colombia. It will have the capacity to transportup to 300 MW of electric power in either direction. However,lack of political will and problems in acquiring funding aredelaying the project.

    Colombia is also involved in discussions with Bolivia, Chile,Ecuador and Peru to develop a possible interconnectionbetween the five Andean countries. The project, called theAndean Interconnection, is likely to consist of 2,536 km ofpower lines and cost about USD950 million.

    Further, talks have begun between Colombia andVenezuela to improve existing and create new electricityinterconnections.

    In August 2013, the inter-government committee forVenezuela and Colombias electricity sector held its firstmeeting in Caracas. The group discussed, among other topics,proposals for new electricity interconnection lines betweenthe two countries. These include Puerto Inirida (Colombia)San Fernando de Atabapo (Venezuela); Puerto Colombia(Colombia)Maroa (Venezuela); Casuarito (Colombia)PuertoAyacucho (Venezuela); Guasdualito (Venezuela)Arauca(Colombia); and San Carlos de Ro Negro (Venezuela)SanFelipe (Colombia).

    Conclusion

    Colombias electricity demand is projected to growtremendously over the coming years. Expected demand in2022 is estimated to be 40 per cent higher than the currentdemand. Given this scenario, the country will be focusing onexpanding its capacity base and accordingly will have todevelop transmission infrastructure. There is also arequirement to provide new and innovative mechanisms tofinance renewable energy projects in the country as currentlythese projects depend largely on private banks to meet theirdebt requirements.

    Thus strong political will and private players participationis required along with partnership with multilateral institutionsto provide the required impetus to the countrys renewableenergy sector along with expanding its transmission network.In addition to meeting the countrys power demand, this willhelp boost its economic growth with increased exports ofrenewable energy to neighbouring countries.

  • Global Transmission Report | March 20144

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    Rehabilitating Afghanistans Power Sector(Contd...)

    Table 1: Transmission infrastructure in Afghanistan in 2012

    Voltage Line length (km) Transformer capacity (MVA) No. of substations

    110 kV 1,127 906 24

    132 kV 148 90 2

    220 kV 609 402 4

    Total 1,884 1,398 30

    Source: Afghan Energy Information Center; Global Transmission Research

    The government aims to have a self-sufficient powersupply and create an integrated power network in Afghanistan.Another key goal of the government is to enable its powersector to supply electricity to the countrys entire population.At present, only around 30 per cent of Afghan householdshave power supply with the electrification rate ranging fromzero in rural areas to almost 100 per cent in urban regions.

    Other key priorities of the government includerehabilitation of power infrastructure damaged by the warand expansion of installed capacity and the distributionnetwork; rebuilding the electricity tariff system; improvingsector governance and coordination; and promoting public-private partnerships.

    The government also has plans to develop renewableenergy such as micro-hydro and solar. In 2012, the governmentlaunched the National Energy Supply Program to accelerateexisting electricity projects; encourage new cost-effectiveinvestments in electricity generation, transmission anddistribution; and increase capacity to manage electricalproduction and distribution efficiently.

    The state-owned vertically integrated power utility DaAfghanistan Breshna Sherkat (DABS) operates and managesthe entire electricity infrastructure in Afghanistan includinggeneration, imports, and transmission and distributionactivities. The Ministry of Energy and Water (MEW) isresponsible for policy and strategy development for theelectricity sector in Afghanistan.

    Afghan power sector

    At the end of 2012, Afghanistan had an installed capacity of522 MW, almost equally contributed by hydro and thermalpower plants. Until recently, hydroelectric power was adominant source of electricity in Afghanistan. However, in thelast few years, some diesel-based power plants have beeninstalled with the help of multilateral aid. The country has sofar failed to develop any renewable source of energy. Thereare currently no centralised power plants that utiliserenewable energies like solar, wind, biomass or geothermal.

    Wind and solar power have the maximum potential forfuture development. However, renewable resources are notexpected to play a significant role in power generation inAfghanistan within the next 20 years.

    Afghanistan is estimated to have generated 915 GWh ofelectricity in 2012. Despite an increase in the thermal installedcapacity, the power generated by thermal sources has beenconsistently falling since 2005. Thermal generation accountsfor barely five per cent of the total generation. A key reasonfor this decline is that only one fifth of the installed thermalcapacity is operational. The low available capacity has madeAfghanistan heavily dependent upon imports to meet itselectricity needs. Imports from neighbouring countries haveincreased from 432 GWh in 2005 to 3,129 GWh in 2012 andsupplied nearly 75 per cent of the countrys electricity demand.

    Afghanistans grid operates through four distinct networks.The North East Power System (NEPS) consists of a grid linking17 load centres (Kabul, Mazar-i-Sharif, Jalalabad, etc.) withUzbekistan and Tajikistan; the South East Power System (SEPS)links Kandahar, Helmand etc. with Kajaki; the Herat systemlinks the Herat zone with Iran; and the Turkmenistan systemlinks Herat, Aqina, Andkhoi East/West, Shirin, Tagab, Mimana,Khoja Doko, Sarepul, Shibirghan and Mazar.

    At the end of 2012, Afghanistans high voltage gridcomprised 1,884 km of transmission lines across the 110 kV,220 kV and 500 kV voltage levels. It also has 1,398 MVA oftransformer capacity and 30 substations across the 110 kV,132 kV and 220 kV voltage levels. The country has been able toexpand and strengthen its high voltage grid with the help ofdonor aid. During 2007 and 2012, the country added over 800km of new lines to its high voltage grid.

    Afghanistans grid is linked with Iran, Turkmenistan, Tajikistanand Uzbekistan via nine cross-border interconnections, of whichseven are at 110 kV and above voltage levels. At present,Afghanistans electricity system is not synchronised with anyneighbouring systems which, apart from those of Iran andTurkmenistan, are themselves not synchronised with one other.This results in operational challenges for Afghanistan, which isrequired to split its system into 10 electric islands therebyincreasing costs and reducing reliability of supply.

    Power sector rehabilitation

    The Asian Development Bank (ADB) has prepared a PowerSector Master Plan for Afghanistan, which identifies priorityprojects that need to be implemented to achieve the goal ofproviding power supply for the entire country. As per the plan,USD10.1 billion needs to be invested in the countrys powersector up to 2032. Of this, it has been proposed that aroundUSD7.3 billion should be invested in developing Afghanistanspower generation sector.

  • Global Transmission Report | March 2014 5

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    Table 2: Existing key cross-border electricity interconnections in Afghanistan

    Interconnection Voltage (kV) TypeHerat (Afghanistan)Taibat substation (Iran) 132 SingleHerat (Afghanistan)Torbat-e-Jam substation (Iran) 20 SingleZaranj (Afghanistan)Zohak substation (Iran) 20 SingleKunduz SS (Afghanistan)Geran substation (Tajikistan) 110 SingleKunduz SS (Afghanistan)Sangtuda substation(Tajikistan) 220 DoubleAndkhoy (Afghanistan)Zernow substation (Turkmenistan) 110 SingleToragundi and Herat (Afghanistan)Mary substation (Turkmenistan) 110 DoubleNaibabad (Afghanistan)Surkhan substation (Uzbekistan) 220 DoubleSource: Asian Development Bank

    The total peak demand in 2032 is expected to stand at around3,500 MW and electric consumption at 18,400 GWh (base casescenario). To meet this demand, 3,163 MW of new capacity isproposed to be added, of which 1,563 MW will be added throughhydroelectric power plants and 1,600 MW through the thermalsegment. However, new capacity addition will only take placebeyond 2017, with nearly 738.5 MW of generation capacity beingadded during the period 201720.

    As per the Power Sector Master Plan, the country mustcommission several power plants over the next few years toensure stability of power supply. These include the 180 MWSurobi 2 hydro plant, which will be commissioned in 2018, the40 MW Salma hydro plant to be commissioned at the latest by2020, and the 100 MW Kajaki hydro plant addition to becommissioned by 2020. In addition, the 400 MW Sheberghancombined cycle power plant, which is being developed withsupport from the US Agency for International Development(USAID), is expected to be commissioned at the earliest by2017. While wind and solar power have the maximum potentialfor future development, renewable resources are not expectedto play a significant role in power generation in Afghanistanover the next 20 years.

    Over the next two decades, Afghanistan must focus onstrengthening and expanding its transmission infrastructure.The grid expansion will help increase access to electricity forhouseholds, strengthen grid capacity to facilitate cross-borderpower exchanges and connect new generation facilities.

    There are also plans to create a unified national grid, whichwill enable Afghanistan to benefit from being an electricitytransit country between energy-rich Central Asia and energy-poor South Asia, and be an anchor country of the regionalTurkmenistanUzbekistanTajikistanAfghanistanPakistan(TUTAP) interconnection concept.

    By 2032, there are plans to add around 6,350 km of lines,10,000 MW of transformer capacity and 94 substations to itsexisting grid. As per the master plan, Afghanistan will need tospend nearly USD3 billion on developing its transmissioninfrastructure by 2032.

    A key project proposed to be implemented in the country isthe 500 kV Turkmenistan to Afghanistan interconnector. Theline will begin from the 500 kV Atamyrat substation (150 kmfrom the Turkmenistan-Afghanistan border) and connect toSheberghan via Andkhoy in Afghanistan (110 km). Initially, theline will be operated at the 220 kV level. The plan also entails afurther connection between Sheberghan and Mazar-i-Sharif(140 km) via a new 220 kV double-circuit line. This system will

    enable the transfer of 300 MW of power from Turkmenistan.During 2015-2020, the project will be further expanded, entailingthe construction of a 500 kV back-to-back convertor station atPul-e-Khomri, a 500 kV line from Sheberghan to Pul-e-Khomri,a 220 kV AndkhoySheberghan line and expansion of theAndkhoy and Sheberghan substations. This system will enablethe import of 1,000 MW of power from Turkmenistan.

    A 500 kV line is also proposed to be constructed acrossthe Hindu Kush to remove existing capacity constraints, whichprevent Afghanistan from importing a greater amount ofpower from Turkmenistan. Under this project, 500 kVsubstations at Pul-e-Khomri and Arghandi will be establishedalong with a 296 km long, 500 kV line between the twosubstations. There are also plans to link the SEPS to NEPS totransfer the power generated or imported in the north to thesouth. The project, driven by USAID funding, entails theconstruction of a 450 km long, 220 kV line between Arghandiand Kandahar.

    A 500 kV line to connect Pakistans grid with Afghanistan isalso proposed by 2020. The project entails the expansion ofthe Arghandi substation and construction of a 210 km long,500 kV transmission line from Arghandi to the border withPakistan via Jalalabad. Besides this, a 132 kV single-circuitline is also being planned from Iran to Farah in Afghanistan toenable additional electricity imports from Iran. Afghanistanis also part of the Central Asia-South Asia ElectricityTransmission and Trade (CASA-1000) project under which ahigh voltage direct current (HVDC) connection betweenCentral Asia and South Asia crossing the Hindu Kush will beset up to transport surplus power from the power systems ofKyrgyzstan and Tajikistan to Pakistan via Afghanistan.

    Future outlook

    The long years of war have severely damaged the energysector in Afghanistan. The surviving power infrastructure isaging and inadequate. Any kind of rebuilding of the economywill require huge investments in the energy sector, whichserves as the backbone for all industries. However, since theGovernment of Afghanistan lacks the required resources andexpertise, foreign aid and private sector participation seemindispensable in the near future.

    Moreover, a strong commitment from the government toensure a stable political environment as well as to develop anappropriate legal framework are needed to improve theinvestment climate to facilitate infrastructure development.

  • Global Transmission Report | March 20146

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    Installed capacity (MW) 1,438

    Generation (GWh) 5,230

    Consumption (GWh) 3,770

    Transmission lines (km) 4,270

    Transformer capacity (MVA) 2,189

    Number of substations 38Source: Global Transmission Research

    Table 1: Overview of Tanzanias power sector (as of 2012)

    It plans to increase the share of renewable energy in thetotal energy mix from the current close to zero level to around650 MW by 2035.

    Tanzania had an installed generation capacity of 1,438 MWas of 2012. Its high voltage transmission network comprisedof 4,270 km of transmission lines of 132 kV and 220 kV voltagelevels in 2012. Tanzania Electric Supply Company (TANESCO)also owns 546 km of 66 kV lines.

    The country has a high voltage transformer capacity of2,189 MVA and 38 primary grid substations. Tanzania currentlyhas interconnections with Uganda at the 132 kV level, Zambiaat the 33 kV and 66 kV levels and Kenya at the 33 kV level.

    Tanzanias electricity sector is dominated by the state-owned, vertically integrated utility TANESCO, which ownsaround 60 per cent of the countrys generation plants and theentire transmission and distribution network.

    In 1992, the sector was opened up and private participationwas sought. Today, several big independent power producers(IPPs) exist and contribute the remaining 40 per cent of theinstalled capacity. These include Independent Power TanzaniaLimited, Songas, Symbion and Aggreko.

    Expansion plans

    Tanzania plans to increase its capacity to 3,400 MW by 2017and further to 8,990 MW by 2035. Of this capacity, 3,304 MWwill be based on hydro, 995 MW on gas, 3,800 MW on coalwhile the remaining will be renewable and exports. Some ofthe planned power plants are the 150 MW Kinyerezi I, 210 MWSomanga Fungu, 240 MW Kinyerezi II, 200 MW Kiwira I, 60MW Solar I, 50 MW Wind I and 50 MW Wind II power plants.

    To cater to the upcoming electricity generation capacity,Tanzania has planned to increase the capacity of its grid aswell as increase access to electricity. TANESCO has devised alarge-scale grid expansion plan to modernise the old and agedline network as well as to strengthen links with neighbouringgrids. The company is implementing plans to expand the gridand make additions to the transmission network at the 330 kVand 400 kV levels. Additions to the existing 220 kV and 132 kVlines have also been planned.

    A total of 6,894 km of 132 kV and above lines will beconstructed during 2014-22. The maximum addition has beenplanned at the 220 kV voltage level. Tanzania has planned aninvestment outlay of around USD2.6 billion over the period201220. Of the total planned investment, 73 per cent will gotowards developing transmission lines and the remaining 37per cent is for developing substations and transformers, andpaying for compensation and distribution system lossesremediation.

    Key grid projects

    Tanzania has planned six interconnection projects forimplementation during the 201422 period. A key project is theBackbone Transmission Investment Project, which entails theconstruction of the 670 km long, 400 kV transmission line from

    Tanzanias Grid Expansion Plans (Contd...)

    from Iringa via Mtera, Dodoma and Singida to Shinyanga.The project is intended to supplement and strengthenelectricity supply in the north-western part of Tanzania. Thisproject is also linked with the planned 400 kV ZambiaKenyaTanzania interconnection project. The project is estimated tocost over USD468 million and is being funded by severalmultilateral financial institutions. The African DevelopmentBank (AfDB) has committed to provide USD64.8 million, KoreasEconomic Development Cooperation Fund (EDCF) will provideUSD36 million, the European Investment Bank (EIB) willprovide USD134.5 million, the World Banks InternationalDevelopment Association (IDA) will provide USD150 millionand Japan International Cooperation Agency (JICA) willprovide USD64.8 million. TANESCO will contribute USD18million for the project.

    TANESCO has also planned an interconnection project withKenya and Zambia. The 1,560 km line will link the power gridsof Zambia, Kenya and Tanzania (ZKT). The ZKT project entailsthe construction of a 700 km long, 400 kV double-circuittransmission line originating in Serenje in Zambia and endingat Mbeya in Tanzania (ZambiaTanzania interconnector);reinforcement of Tanzanias transmission system through theconstruction of about 600 km of transmission lines; andconstruction of a 260 km long, 400 kV transmission line betweenArusha in Tanzania and Isinya (near Nairobi) in Kenya. TheTanzaniaKenya section is expected to be completed in 2016while the ZambiaTanzania section is likely to be completed in2018.

    Uganda and Tanzania are planning to construct a 220 kVline between Masaka (Uganda) and Mwanza (Tanzania). Theline will stretch for about 85 km in Uganda and for about 215km in Tanzania. The project is scheduled for completion by2015. Tanzania is also planning a new 220 kV connection withMozambique. The project is presently in the initial stages ofdiscussion.

    Tanzania, Rwanda and Burundi are planning a 63 MWhydropower plant project at Rusumo Falls located on theTanzanian borders with Rwanda and Burundi. The project willlink the national grids of the three countries through a 220 kVtransmission line by 2018. The transmission project entails theconstruction of a 161-km long line to connect Rusumo to Gitegain Burundi; a 109-km long line to connect Rusumo to Birembonear Kigali in Rwanda; and a 98-km long line to connect Rusumoto Nyakanazi in Tanzania. A 220 kV line is also being plannedbetween Tanzania and Malawi. The line will help transfer powerfrom a 340 MW hydro plant proposed to be set up at Songwe,on the TanzaniaMalawi border. This is a longer-term projectand is expected to be completed by 2021.

  • Global Transmission Report | March 2014 7

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    Table 2: List of key proposed transmission projects in Tanzania

    Project Length (km) Voltage (kV) Scheduled/Expected completion

    BulyanhuluGeita transmission line project 100 220 2014

    GeitaNyakanazi transmission line 130 220 2014

    Backbone Transmission Investment Project 670 400 2015

    MorogoroHaleArusha transmission line project 640 400 2015/2016

    MtwaraSingida HVDC transmission project ~1,000 330 kV HVDC 2014/2015

    North-West grid extension project 1,150 220 2015/2016

    Somangafungu to Kinyerezi transmission line 198 220 2014

    Makambako to Songea transmission line 250 132 2015

    Nyakanazi to Kigoma transmission line 280 220 2015

    Masaka to Mwanza transmission line 250 220 2015

    Mkuranga A to Mkuranga B transmission line 10 220 2015

    Mlandizi to Zinga transmission line 48 220 2015

    Wind project Sinigda 10 220 2016

    Mtwara power plant 20 220 2016

    Kiwira to Mbeya transmission line 100 400 2016

    Mbeya to Iringa transmission line 350 400 2016

    Dar es Salaam to ChalinzeTangaArusha transmission project 682 400 2016

    Nyakanazi to Mbeya transmission line 1,148 220 2017

    Dar es SalaamMorogoroDodoma transmission line 451 400 2017

    Ngaka to Makambako transmission line 200 400 2017

    SomangaLindiMtwara transmission line 154 220 2017

    Nyakanaz to Rusumo transmission line 95 220 2018

    Kigoma to Sumbawanga transmission line 485 220 2018

    Pensulo to Mbeya transmission line 700 330 2018

    Mchuchuma to Mufindi transmission line 200 400 2018

    Masigira to Makambako transmission line 180 220 2019

    Rumakalo to Mbeya transmission line 150 400 2020Notes: HVDC high voltage direct currentSource: Ministry of Energy and Minerals

    Among the other transmission line projects beingimplemented by Tanzania is the 133 km long, 220 kV GeitaNyakanazi transmission line slated to be slated to be completedin 2015. Another is the MorogoroHaleArusha transmissionline project, which aims to strengthen and enhance powersupply to Tanzanias north-eastern grid. Under the project,TANESCO plans to construct a 640-km long, 400 kVtransmission line from Morogoro to Arusha via Hale.

    Tanzania has also formulated plans to develop substationsin the country to add to the transformer capacity. A transformercapacity of 11,450 MVA is expected to be added during theperiod 201220. Of the total, 2,950 MVA is to be added at the220 kV level and the remaining 8,500 MVA at the 400 kV level.Also, a total of 25 substations will be developed during theperiod 201220 with 14 at the 220 kV level and 11 at the 400 kVlevel.

    Summing Up

    To meet the increasing electricity demand, as well as toenhance access to and stability of the electricity supply,Tanzania plans to expand the countrys installed capacity, bothby installing new capacity and by rehabilitating existing powerplants. The country is also working to increase the share ofrenewable energy in its total energy mix to reduce itsdependence on hydropower.

    To cater to this upcoming generation capacity, Tanzaniahas set medium term and long term transmission targets. Thecountry is also developing several cross-borderinterconnection projects. The government has receivedfinancial assistance from several donor agencies forimplementing its power sector plans. These measures areexpected to strengthen Tanzanias power sector significantly.

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    NORTH AMERICA

    NU to invest USD4.3 billion during 2013-17 on transmission infrastructure

    Connecticut-based Northeast Utilities(NU), which operates New Englandslargest energy delivery system, hasplanned to spend USD4.3 billion ontransmission infrastructure improvementduring 2013-17. This is about 15 per centhigher than its previous years estimatesand equal to the amount spent by thecompany during 2002-12.

    As per estimates of the company,the northern part of New England holdssignificant renewable energy potential,which can be utilised to fulfill the risingpower demand of the southern area ofthe state. The funds will also be spenton its Northern Pass Project, which NUis jointly developing with Canadiancompany Hydro-Qubec (HQ).

    The project involves construction ofa new participant-funded transmissioninterconnection between New Englandin the US and Qubec, Canada. TheUSD1.4 billion project, also known as theNew EnglandQubec interconnectionproject, aims to deliver 1,200 MW ofhydro power from HQs Des Cantonssubstation in Quebec, Canada to theproposed converter terminal at Franklinin southern New Hampshire, furtherextending to the Deerfield substation inDeerfield, USA. The project is likely tobe completed by 2017.

    The US Department of Energy (DoE)is likely to reveal an alternative routefor the Project before releasing thedraft environment impact assessment(EIA) study by end of 2014.

    In January 2014, the NewHampshires Congressional delegationrequested DoE to provide details of thealternative route of the project.

    In response to this, the energydepartment has sent a letter to the statecongressional delegation, whilehighlighting that it is under the process ofreviewing the public comments receivedfrom local residents and organisations.

    NIPSCO receives approval for USD1billion power network upgradationproject

    Northern Indiana Public ServiceCompany (NIPSCO) has received

    approval from the Indiana Office ofUtility Consumer Counselor for its USD1billion project to strengthen its agingpower transmission and distributionnetwork in the region over the next 7years. This includes its ReynoldsTopeka Electric System ImprovementProject. This now allows the companyto start construction works of the projectin Kosciusko County in the next fewmonths.

    The project entails the constructionof a 160 km, 345 kV single-circuit linestarting from the Reynolds substationin White County, proceeding to the BurrOak substation near the town of BurrOak in Marshall County, andterminating at the Hiple substation nearthe town of Topeka in LaGrange Countyin Indiana. The USD271 million projectis one of the 17 similar projects led bythe Midwest Independent TransmissionSystem Operator (MISO) across theMidwest.

    The project is scheduled forcompletion in 2019.

    Ohio Edison to invest USD475 million onOhio grid network during 2014

    Ohio Edison, a subsidiary of FirstEnergyCorporation, has planned to investabout USD475 million in 2014 to upgradethe power network across 36 countiesof Ohio. This represents about anincrease of USD233 million comparedto the previous years investment planof the company for the region.

    Major projects scheduled for 2014include the building of new substations,starting construction of a new 100 mile(161 km) transmission line project,installation of enhanced remote-controltechnology in multiple facilities,inspection and replacement of utilitypoles, and continuation of tree-trimmingwork.

    Of the total USD475 millioninfrastructure investment plan for theregion for 2014, more than USD344million will be spent on powertransmission projects built and ownedby American Transmission Systems(ATS) Incorporated, a subsidiary ofFirstEnergy.

    The planned investment amount willbe spent on:

    Initiating the construction of a 100 mile(161 km), 345 kV transmission line from

    FirstEnergys Bruce Mansfield PowerPlant located near Ohio River to theCleveland area to enhance systemreliability. It is anticipated thatapproximately $128 million will beinvested in this multi-year project in2014.

    Initiating construction of a USD52million transmission substation in theMassillon area and a USD38 millionsubstation in Toronto, Ohio, to helpenhance system reliability.

    Continuing construction work on a138 kV transmission line in theSpringfield area with an investment ofUSD34 million in 2014.

    Constructing a USD4.8 milliontransmission line segment nearBoardman to serve Pennant Midstreamfacilities to enhance power supply in theeastern Ohio shale gas region.

    Installation of remote-controlequipment and breaker upgrades atsubstations in Portage, Mahoning andTrumbull counties at a cost of more thanUSD1.6 million.

    Investing more than USD18.6 millionas part of Ohio Edisons ongoing tree-trimming programme to maintainproper clearances to help reduce tree-related outages in Akron, Alliance,Ashland, Aurora, Barberton, Bellevue,Elyria, Girard, Lisbon, Lorain, Mansfield,Marion, Massillon, Medina, Niles, NorthRidgeville, Ravenna, Sandusky,Springfield, Twinsburg, Warren andYoungstown.

    Upgradation of major circuits inColumbiana, Stark and Trumbullcounties at a cost of USD3 million.

    Completion of a USD1.2 millionmodular substation in Bath Township toserve additional load growth.

    Investing more than USD6.8 millionfor inspection and replacement ofdistribution poles in the Ohio Edisonservice area. This inspection process isconducted on a 10-year cycle. Morethan 59,000 utility poles will be inspectedin 2014, with about 2,000 expected to bereplaced.

    JCP&L to spend USD250 million in 2014

    Jersey Central Power & Light (JCP&L),a subsidiary of FirstEnergy, has plannedto spend more than USD250 million tofurther expand and strengthen its

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    infrastructure to enhance and maintainservice reliability throughout its 13-county service area, in 2014.

    The funds will be spent on thecompletion of transmission line projectsin Monmouth, Ocean and Morriscounties, along with a smart grid projectin Morris County and construction of anew substation in Hunterdon County.The company has also planned toupgrade 118 circuits, add new circuits,inspect and replace utility poles, andperform tree trimming work on morethan 3,400 miles (5,474 km) of distributionand transmission lines.

    JCP&Ls planned system expenditureincludes:

    Upgradation of more than 118distribution circuits at a cost of nearlyUSD6 million in various communities toenhance service reliability.

    Initiating a USD7 million worth smartgrid project of DoE on three circuitsserving Bernards Township, HardingTownship and Morristown.

    Replacing underground distributioncables.

    Performing infrared scans on 300circuits to detect equipment in need ofreplacement and replace them.

    Performing tree trimming work on3,400 miles of line.

    In addition to this, JCP&L willcontinue its Energizing the Futuretransmission system enhancementprogramme, under which USD150million will be spent on:

    Completing a 115 kV line between theEnglishtown substation in Manalapanand the Wyckoff substation inHightstown. The USD23 million projectalso includes the addition of four 115 kVbreakers within the substation.

    Completing construction on a newUSD10 million substation in West Amwellto provide flexibility and enhancereliability in Hunterdon County and theHopewell area of Mercer County.

    Installing equipment to upgrade theManalapan substation in MonmouthCounty, including a new transformer, anew 230 kV breaker and constructingtwo new distribution circuits.

    Planning and designing a new USD13.5million, 34.5 kV line between the

    Montville and Riverdale substations inMorris County to support future loadgrowth.

    Planning and designing a new USD19million, 230 kV line between theWhippany and Montville substations tosupport future load growth and enhancereliability.

    Planning and designing a new USD53million, 230 kV line between theOceanview substation in Neptune andthe Larabee substation in Howell.

    FirstEnergy to invest USD210 million inWest Virginia and northwest Ohio

    FirstEnergy has planned to invest aboutUSD110 million in 2014 on servicereliability infrastructure upgrades inMon Powers 34-county service area,primarily in north-central West Virginia.This represents about a USD32 millionincrease compared to its previousyears investment.

    Projects scheduled for this yearinclude transmission improvements,building new distribution lines, replacingunderground cables, inspecting andreplacing equipment including utilitypoles and ongoing tree trimmingprogrammes.

    Major investment plans include:

    Investing USD36 million to continueMon Powers ongoing tree trimmingprogramme in Beverly, Buckhannon,Chester, Clarksburg, Elkins, Fairmont,Huttonsville, Lewisburg, Morgantown,Wellsburg, Weirton and Weston

    Investing more than USD33 million tosupport the expansion of Marcellusshale gas industry

    Investing more than USD17 million toprovide electrical service to newresidential and commercial customersin north-central West Virginia, includingMorgantown, Fairmont, Parkersburgand Weirton

    Increasing capacity of the CollinsFerryOsage 138 kV transmission lineat a cost of more than USD5 million tobenefit Mon Power customers inMonongalia County near Morgantown

    Inspecting 40,000 distribution polesand replacing about 250 poles at a costof more than USD2 million

    Investing about USD1.8 million toreplace electrical equipment identified

    during routine inspections of thetransmission system to enhancereliability throughout Mon Powersservice area

    FirstEnergy has also planned toinvest USD100 million to upgrade powerinfrastructure of the service region ofits subsidiary of Toledo Edison innorthwest Ohio in 2014. This representsabout an increase of USD25 million overits last years investment.

    Of the total planned investmentamount, USD59 million will be spent ontransmission projects built and ownedby ATS Incorporated, a FirstEnergytransmission company.

    Some of the projects planned underthis investment plan are:

    Initiating the construction of a 345 kVsubstation in Middleton Township inWood County, scheduled to becompleted in 2015 with an investmentof USD18 million in 2014.

    Continuation of the constructionworks of a 48 mile (77.28 km)transmission line project to connectseveral substations. During 2014, USD14million will be spent on the project.

    Upgradation of the capacity of existingsubstations by adding moretransformers at a cost of more thanUSD12 million and replacement orupgradation of existing equipment withan investment of more than USD3million.

    Inspection and replacement of utilitypoles in Clyde, Fremont, Defiance, GreenSprings, Swanton and Toledo. Thisinspection process is conducted on a 10-year cycle. Inspections began in January,with replacement work scheduled to beperformed throughout the year at a costof more than USD3 million.

    Continuation of Toledo Edisonsongoing tree-trimming programme tomaintain proper clearances and helpharden distribution and transmissionfacilities against tree-related stormdamage. Some of the communitiesscheduled for work this year includeDefiance, Maumee, Perrysburg,Rossford, Sylvania, and Toledo.

    West Penn Power plans to invest USD160million in 2014

    West Penn Power, a subsidiary ofFirstEnergy, has planned to invest

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    USD160 million in 2014 on infrastructureupgrades to enhance service reliabilityin its 24-county service area.

    Of this, the company will spendUSD23 million on power transmission-related projects built and owned byTrans-Allegheny Interstate LineCompany, a FirstEnergy transmissionaffiliate. Scheduled projects include:

    Installing a new transformer at asubstation in Armstrong County at acost of about USD22 million

    Spending more than USD25 million totrim trees along more than 4,500 miles(7,245 km) of distribution andtransmission lines as part of West PennPowers ongoing programme

    Investing more than USD23 millionon various projects to expand thedistribution system throughout WestPenn Powers 24-county service area

    Building new transmission switchingfacilities in central Pennsylvania to helpenhance transmission reliability andcapacity in the State College and St.Marys regions at a cost of more thanUSD10 million

    Investing USD2.1 million to increasethe transmission capacity of the Enonsubstation near Ryerson station inGreene County to help supportelectricity demand of the areas coalmines

    Reinforcing breakers at the 500 kVYukon substation in Washington Countyat a cost of more than USD800,000

    Installing additional distribution linecapacity in the Park Hills area of StateCollege at an investment of nearlyUSD600,000

    Upgrading the Byerly Crestdistribution substation in the NorthHuntington area of Route 30 inWestmoreland County at a cost of morethan USD300,000

    Building a new 2 mile (3.22 km)distribution line in the Manifold area ofWashington, at a cost of more thanUSD360,000

    Inspecting about 54,000 utility polesand replacing or reinforcing about 1,100poles at a cost of nearly USD4 million(this inspection process is conducted ona 12-year cycle in Pennsylvania, andreplacement work is scheduled to becompleted by the end of the fall)

    Upgrading equipment on 135distribution circuits throughout theservice territory at a cost of more thanUSD600,000

    Potomac Edison plans to invest USD143million in 2014

    Potomac Edison, a part of FirstEnergy,has planned to invest more thanUSD143 million in 2014 in transmissionand distribution infrastructureupgrades in its service area. Majorprojects scheduled for this year includetransmission enhancements, buildingnew distribution circuits, replacingunderground cables and making systemenhancements in high-growth areas.

    Of the total investment amount,about USD42 million will be spent ontransmission-related projects built andowned by Trans-Allegheny InterstateLine Company, a FirstEnergytransmission affiliate.

    Kay projects of the companyinclude:

    Rebuilding of a 500 kV transmissionline in Frederick County, Maryland, aspart of a joint project with DominionPower. Potomac Edison will investUSD13 million for the project.

    Investing more than USD18 million totrim trees and control vegetation along2,600 miles (4,186 km) of distribution andhigh-voltage transmission lines inAllegany, Berkeley, Frederick, Garrettand Washington counties

    Continuing improvements at theDoubs substation in Frederick Countyat a cost of more than USD4 million

    Installation of new equipment at acost of more than USD2.5 million toincrease capacity of the Davis Millsubstation in Montgomery County,Maryland, to accommodateaccelerated power demand in theGermantown and Clarksburg areas

    Installation of new equipment at theCorning substation in Berkeley County,West Virginia, to allow for load growthand help enhance reliability for existingcustomers in the Tabler and Inwoodareas

    Completing systematic repairs andreplacing equipment on a 138 kVregional transmission line spanningHardy and Mineral counties, WestVirginia, to help enhance regionalreliability

    APCO to spend USD130 million onVirginia and West Virginia networks

    Appalachian Power Company (APCO)is seeking regulatory approval for itsUSD130 million worth power networkupgradation project in southern WestVirginia and Southwest Virginia. As perthe company, the regions aging powernetwork required upgrades to ensurereliable power supply in the area. Areasspecifically targeted for theinfrastructure upgrade include Tazewell,Buchanan and McDowell counties.

    Under this project, the company isplanning to spend USD50 million insouthwest Virginia to build a newsubstation in Buchanan County, improvethree existing substations in TazewellCounty, build 138 kV transmission linesin Tazewell and Buchanan counties, andupgrade an existing 69 kV, 8.5 mile (13.68km) line in Tazewell County also to 138kV, along with about 3.5 miles (5.6 km) ofthe line in West Virginia.

    In West Virginia, the company plansto spend about USD80 million toupgrade transmission infrastructure inMcDowell County. The project scopeincludes the retirement and removal ofa 35 mile (56.35 km), 88 kV transmissionline; retirement and removal of twoexisting substations; construction ofthree new substations; associatedimprovements at other existingsubstations; and upgradation of anexisting 17 mile (27.37 km), 88 kV line tothe 138 kV level. In addition, the existingwood H-frame tower structures will alsobe replaced with steel H-framestructures.

    Wood H-frame tower structures alsowill be replaced with steel H-framestructures in both states. The steelstructures are taller and sturdier,according to the company.

    Both the projects require approvalfrom Virginia and West Virginiaregulators, and are scheduled to becompleted by 2017. The company hasalso hosted an informational workshopfor the projects on February 24 and 25in Virginia and on February 27 in WestVirginia.

    FPL to upgrade more than 100transmission lines in 2014

    Florida Power & Light (FPL) Companyhas planned upgrades of about 100power lines and other related

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    infrastructure during 2014. This is partof the companys 2013-15 investmentplan under which it has planned to investabout USD428 million to upgrade itspower transmission network for majorstorms.

    Of this, about USD170 million will bespent on upgrading power lines andequipment serving essentialcommunity facilities including hospitals,police and fire stations, 911 centres,water treatment plants, grocery stores,pharmacies and gas stations. The workincludes strengthening of about 450miles (724.5 km) of power lines.

    During 2014, the company will investin:

    Replacement of thousands ofdistribution utility poles to withstandhurricane-force wind gusts of 130 mphor more

    Installation of additional smart gridtechnology to better detect and addresspower outages, and adding improvedlightning protection equipment

    Replacement of wood poles withconcrete structures and upgradingassociated hardware

    Installation of new flood monitoringsystems at select power substationsthat are most susceptible to possibleflooding and storm surge

    Penn Power to invest USD71 million in2014

    Pennsylvania Power Company (PennPower), a subsidiary of FirstEnergyCorporation, has planned to spendabout USD71 million in 2014 to improvethe service reliability of itsinfrastructure. This is about USD34million higher than its previous yearsinvestment plan.

    Major projects scheduled for thisyear include smart meter installations,circuit and utility pole inspections andreplacements, the addition of protectivedevices, and ongoing tree trimming. Ofthe total investment amount of USD71million, about USD37 million will beinvested in for transmission-relatedprojects built and owned by ATSIncorporated, a FirstEnergytransmission affiliate.

    The scheduled projects include:

    Investing about USD14 million onsmart meter installations

    Trimming trees along nearly 1,200circuit miles (1,932 km) at a cost of USD6million

    Upgrade of a portion of an existing138 kV transmission line at a cost ofUSD3 million

    Completing a 69 kV line in the NewCastle area at a cost of nearly USD2million

    ERCOT energised USD3.17 billion worthtransmission projects in 2013

    The Electric Reliability Council of TexasIncorporation (ERCOT) had energisedtransmission projects worth USD3.17billion in 2013, along with 848 MW powergeneration capacity.

    This marked about 8 per cent growthin the total installed wind energygeneration capacity of the region. Withthis, the total installed wind capacity inthe ERCOT region reached 11,255 MWas of December 31, 2013. The installedcapacity in the northern region stood at982 MW, in the southern region at 2,775MW, and in the western region at 7,498MW.

    The grid operator signed threegeneration interconnection agreementsin December 2013. These are for EDFGroup subsidiary, EDF RenewableEnergys 161 MW Spinning Spur WindIII project in Oldham County; PioneerGreen Energy LLCs planned 300 MWGreen Pastures wind project in KnoxCounty, Texas; and Pioneer GreenEnergys 200 MW planned Logans GapWind 1 project in Comanche County,Texas.

    ERCOT had 51,113 MW ofgeneration interconnection requests asof December 31, 2013, as compared torequests for 50,015 MW as of November30, 2013. Generation requests for windand solar projects rose to 24,266 MWand 2,849 MW respectively inDecember, compared with 22,693 MWand 1,759 MW respectively inNovember. In addition, it alsosanctioned transmission projects worthUSD349.8 million in 2013.

    During 2013, CenterPoint Energysubmitted its Katy area project, whichis likely to cost about USD20.4 million;LCRA Transmission ServicesCorporation submitted the 138 kVLeander-Round Rock project, which islikely to cost about USD50.9 million; and

    Sharyland Utilities LP submitted theBrady area project and West Texasprojects for the Stanton area.

    Transmission projects that remainunder review include: Energy FutureHoldings Corporation subsidiary, OncorElectric Delivery Company LLCs WestTexas area project and CenterPointEnergys proposed Houston regionimport capacity project.

    EDEG approves 11-year tax abatement forPlains and Eastern Clean Line

    The Economic Development GrowthEngine (EDGE) for Memphis & ShelbyCounty has approved tax abatement of11 years for Texas-based Plains andEastern Clean Line LLC.

    An affiliate of Clean Line Energy isplanning to construct a 750 mile (1,207.5km) high voltage transmission line toevacuate wind energy from theOklahoma and Texas Panhandles toload centres in the southeast. The USD2billion Plains and Eastern Clean LineProject will provide a direct currenttransmission line from Texas toMemphis, Tennessee, and will becapable of carrying 7,000 MW ofrenewable power.

    The EIA of the project is likely to becompleted by 2015, following which thecompany will start the constructionworks of the project in 2016 and isexpected to complete it by 2018.

    As per the EDGE Board, the landwhich the company is currently planningto acquire for its transmission project islikely to yield about USD3,000 annualtax revenue. This is likely to increase toUSD5 million after the commissioningof the transmission project.

    In separate news, Clean LineEnergy has announced that the requestfor information (RFI) issued by thecompany for the Plains and EasternClean Line Project has receivedoverwhelming response from I5 windpower generating companies inOklahoma, southwest Kansas and theTexas Panhandle. These developershave rights to over 16,000 MW worth ofwind projects in the region. The RFI wasissued by the company in June 2013.

    As per the company, these RFIresults confirm that there are abundant,high-quality wind resources in theOklahoma Panhandle region, which

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    require new transmission lines like thePlains and Eastern Clean Line totransfer power from mid-south andsoutheast regions.

    Bill for new approval process for HV lineprojects facing opposition submitted inIowa

    Lawmakers in the Iowa House havesubmitted a Bill with Iowa Utilities Board(IUB) to create an alternative processof approving those transmission lineprojects that are facing opposition from5 per cent or more landowners in thelines proposed route. As per the Bill, if 5per cent of landowners in the lines pathare subject to eminent domain, theproject developer should be requiredto propose two alternative routes. ThisBill will affect the progress of the RockIsland Clean Line project.

    The project is being developed byRock Island Clean Line LLC, an affiliateof CLE and includes construction of a500 mile (805 km), 600 kV high voltagedirect current (HVDC) transmission lineto transfer electricity generated fromwind farms located in northwest Iowaand the surrounding states, across thestates of Iowa and Illinois, to a point 50miles (80.5 km) south of Chicago. Here,it will interconnect with existingtransmission lines that feed power tomarkets in the eastern United States.

    The proposed transmission linewould deliver wind energy fromnorthwest Iowa to markets in Illinois,and points eastward. But it might haveto take land by eminent domain tosecure the long, narrow strip that thepower lines and poles would runthrough. Therefore, the local landlordsare opposing the line due to its expectedimpact on their properties and localenvironment.

    The Bill, if approved, will provideadditional authority to landowners tofight against the development of theRock Island Clean Line project.

    BLM releases draft EIS of Gateway Southtransmission line project

    The Bureau of Land Management (BLM)has released the draft environmentalimpact statement (EIS) of the GatewaySouth transmission line projectproposed by Rocky Mountain PowerCompany, a part of PacifiCorp.

    As per the proposed route, the 500kV transmission line will cross thesouthern part of the Uinta Basin. Otheroptions route the line through the basinsnorth side and to the south along theInterstate 70 corridor. This line wouldtransmit about 1,500 MW power formore than 400 miles (644 km) from theplanned Aeolus substation in southcentral Wyoming to the planned Cloversubstation near Mona. The project is apart of the USD6 billion Energy Gatewaydevelopment project of PacifiCorp,which would add about 2,000 miles (3,220km) of transmission line for carrying4,500 MW of electricity through Utah,Wyoming and Idaho.

    As per the proposed routementioned in the draft EIS, the line willrun from an existing substation insoutheast Wyoming through a patch ofnorthwestern Colorado and to centralUtah, to follow existing power lines andthe West-wide Energy Corridor.

    The route would largely avoidprime grouse habitat and sensitivepublic landscapes, but it could pass nearthe entrance of Dinosaur NationalMonument in northwestern Coloradoand south of the Ouray NationalWildlife Refuge in eastern Utah, as wellas along the southern boundary of theAshley National Forest in eastern Utah.

    As a result, a number of BLM andForest Service land-use plans are likelyto be amended before granting right-of-way (RoW) for the line.

    In addition to the preferred route,the draft EIS includes 33 alternativesroutes, which could increase the lengthof the line to 540 miles (870 km).

    The BLM will seek public commentsof the draft EIS till May 22, 2014. For this,BLM has scheduled 22 public meetingsin March and April.

    BLM plans to begin construction ofthe line in 2018 and bring the line intoservice by 2020.

    ICC approves Illinois Riverstransmission lines project

    The Illinois Commerce Commission(ICC) hosted a re-hearing on the IllinoisRivers transmission lines project ofAmeren Transmission Company ofIllinois (ATXI) on February 20, 2014, andapproved the PanaMt. ZionKansanSugar Creek stretch of the line in Illinois.

    The commission review on the re-hearing was limited to addressing theneed for construction of or expansionof substations at Ipava, Pana, MountZion, Kansas, Sidney and Rising, andfinding the best route linking Pawneeand Mt. Zion. The commission alsoreviewed an alternative proposal forsections of the route betweenMeredosia and Pawnee, and betweenMount Zion and Kansas.

    The project has been proposed byATXI and is likely to cost about USD860million. This entails the construction ofa 345 kV transmission link from Palmyra,Missouri, to Sugar Creek, Indiana,crossing the state of Illinois under theMulti-Value Projects (MVPs) portfolio.The 330 mile (531 km) long project is partof the Grand Rivers project, and will startfrom a new substation near Palmyra,Missouri to Sugar Creek, Indiana, thuscrossing the Mississippi River to Quincy,Meredosia, Pawnee, Pana, Mt. Zion, andKansas. As part of the project, ninesubstations will be built or expanded inIllinois and six 345/138 kV transformerswill be installed.

    Apart from the PanaMt. ZionKansanSugar Creek stretch, the linehas four more segments, the 28-mileSidneyRising stretch in Illinois; and the41-mile PalmyraQuinceMeredosiaIpavaPawneeb stretch in Illinois andMissouri, West AdairPalmyra Tap inMissouri, and PawneePana in Illinois.

    ATXI has also hosted two workshopson March 4, 2014 in Peoria and on March5, 2014 in Galesburg to discuss theproject with the local residents.

    Tres Amigas signs agreement withBroadview Energy for New MexicoExpress project

    Tres Amigas has signed an agreementwith Broadview Energy, which isdeveloping a wind farm in northern NewMexico for 25 years, for its New MexicoExpress project. Broadview is the firstcompany to sign a contract for thetransmission line project, which aims tolay underground HVDC lines to connectthe New Mexico region with powermarkets in Texas and the SouthwestPower Pool (SPP). This will be thecountrys first 2,000 MW undergroundHVDC project.

    Under the project, Tres Amigas isplanning to build the 360 mile (580 km)

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    project in two phases. Phase I includesconstruction of an HVDC line to connectnorthwestern New Mexico with theplanned Tres Amigas superstation in theeastern part of the state. Thesuperstation will later connect to theWestern and Eastern interconnectionsand the Texas grid system. Under PhaseII of the project, a loop will beconstructed in southern New Mexico viaan HVDC Eddy County to Clovistransmission line.

    Though the cost estimates of theproject have not been disclosed by thecompany, it is planning to seek financialassistance from the federal governmentdue to the high cost of burying the line.It also plans to set up a public-privatepartnership to develop this project.

    Broadview is installing 200 GE windturbines in the region and is likely toconnect its project with the transmissionline by the end of 2015.

    TDI to start construction works ofChamplain Hudson Power project byend-2014

    Transmission Developers Incorporated(TDI) is expecting to receive all thefederal permits it needs for its USD2.2billion Champlain Hudson PowerExpress Project by July 2014. Followingthis, the company will start constructionof the project by the end of this yearand complete it by 2017 or 2018.

    The project includes construction ofa 333 mile (536 km), 300 kV HVDCundersea cable line from Qubec inCanada to the proposed AstoriaQueens converter station in theChamplain Valley of New York City inthe US, to help transfer 1,000 MW ofwind and hydropower from southernQubec to New York City and FairfieldCounty. The Blackstone Group is one ofthe leading investors of the project.

    The project had received theapproval from New York Public ServiceCommission (PSC) in April 2013, but isstill required to obtain permits from theU.S. Army Corps of Engineers and theU.S. DoE.

    Brookings CountyHampton transmissionline project to be completed soon

    Construction works of the BrookingsCountyHampton transmission line,which is a part of the Capx2020 project,

    is expected to complete soon. TheCapx2020 project is being developed by11 transmission owning utilities inMinnesota, North Dakota, South Dakota,and Wisconsin.

    These utilities are CentralMinnesota Municipal Power Agency,Dairyland Power Cooperative, GreatRiver Energy, Minnesota Power,Minnkota Power Cooperative, MissouriRiver Energy Services, Otter Tail PowerCompany, Rochester Public Utilities,Southern Minnesota Municipal PowerAgency, Wisconsin Public PowerIncorporated and Xcel Energy.

    The project received approvalsfrom Minnesota Public UtilitiesCommission (PUC) and South DakotaPUC in 2011. It includes theconstruction of a 345 kV, 240 mile (386.4km) long transmission line, which willconnect a new substation in BrookingsCounty, South Dakota, to a newsubstation in Hampton, Minnesota.

    Though a double-circuit (D/C) linehas been constructed under the project,only the single-circuit (S/C) line will beenergised after its completion.

    To utilise the second circuit, aseparate regulatory approval will berequired.

    BLM issues RoD for Sun Valley to MorganTransmission Line project

    The BLM has issued its record ofdecision (RoD) for Arizona PublicServices (APS) Sun Valley to MorganTransmission Line project.

    The project, formerly called the TS-5 to TS-9 transmission project, entailsthe construction of a 38-mile (61 km),500/230 kV overhead transmission lineon single-pole structures between theproposed Sun Valley substation in thetown of Buckeye and the existingMorgan substation in the city of Peoria.

    The project will require a 200-footwide RoW or easement on public,private and trust lands.

    As per BLMs RoD, the line will followthe alignment of State Route (SR) 74,south of Lake Pleasant to Castle HotSprings Road, where it shifts to thesouth side of SR 74 and terminates atthe Morgan substation in Peoria. Itproceeds in a southwest direction to theBuckeye-Surprise area northwest of theWhite Tanks Mountains.

    South Dakota PUC approves Big StoneSouth to Brookings transmission lineproject

    The South Dakota PUC has grantedapproval for the 40 mile (64.4 km) stretchof the 345 kV Big Stone South toBrookings transmission line projectbeing developed by Otter Tail PowerCompany and Xcel Energy. Theremaining segment of the project hasalready received approval from thestate PUC. The project is a part ofCapx2020, which is being developed by11 transmission owning utilities inMinnesota, North Dakota, South Dakota,and Wisconsin.

    These utilities are CentralMinnesota Municipal Power Agency,Dairyland Power Cooperative, GreatRiver Energy, Minnesota Power,Minnkota Power Cooperative, MissouriRiver Energy Services, Otter Tail PowerCompany, Rochester Public Utilities,Southern Minnesota Municipal PowerAgency, Wisconsin Public PowerIncorporated and Xcel Energy.

    The project includes construction ofa 70 mile (112.7 km) long, 345 kV linefrom a new substation near Big StoneSouth, to a substation near BrookingsCounty. It is a part of MISOs multi-valueprojects, which aim to alleviatecongestion and achieve mandates forrenewables in the region.

    Otter Tail Power is liable to constructa 28 mile (45.08 km) stretch of the projectfrom the Big Stone South substation toan area near Gary, South Dakota. Apartfrom this, the company will alsoconstruct two 245 kV lines each with alength of 1.5 miles (2.42 km) from theBig Stone plant substation to a new BigStone South substation.

    I&M to invest USD500 million to upgradepower network of Northeast Indiana

    Indiana Michigan Power Company(I&M), an operating unit of AmericaElectric Power (AEP), has planned toinvest about USD500 million to upgradethe power transmission network ofnortheast Indiana under its PoweringUp Northeast Indiana project. The latteris a part of AEPs regional powernetwork upgradation efforts.

    The company will invest inrebuilding and improvement of existingpower lines and substations, installationof new transmission lines, and

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    upgradation of transmission anddistribution (T&D) equipment. Theproject will strengthen transmissioncapability in and around Fort Wayne.

    I&M is currently seeking publicfeedback on the proposed projects andis likely to complete the majority of theproject works by the end of 2016.

    SDG&E hosts public meeting for USD418million project in Alpine

    San Diego Gas & Electric (SDG&E), asubsidiary of Sempra Energy, hashosted two public meetings in Alpine,San Diego County, California onFebruary 5 and 15, 2014 to discuss itsCleveland National Forest Power LineReplacement Projects with the localresidents.

    The project, which is commonlyreferred to as the Master Special UsePermit (MSUP) and Permit to Construct(PTC) the Cleveland National ForestPower Line Replacement Projects, wasdeveloped by SDG&E along with U.S.Forest Service (USFS).

    Under this project, the company hasproposed to replace the existing powertransmission network of the ClevelandNational Forest (CNF) and thesurrounding areas.

    The proposed project includes thereplacement of six existing 12 kV linesand five lines at 69 kV level spreadthroughout an approximately 880square mile area in eastern San DiegoCounty.

    But the USD418 million project isbeing criticised by local residents andlocal organisations.

    Suggestions include planning morepower generation capacity in the regionalong with the power transmission lines.

    Appalachian Power to invest USD80million in West Virginia

    Appalachian Power has planned toinvest about USD80 million in upgradingits electricity transmissioninfrastructure in McDowell County,southern West Virginia.

    The project scope includes theretirement and removal of a 35 mile(56.35 km), 88 kV transmission line;retirement and removal of two existingsubstations; construction of three new

    substations; associated improvementsat other existing substations; andupgradation of an existing 17 mile (27.37km), 88 kV line to the 138 kV level.

    In addition, the existing wood H-frame tower structures will also bereplaced with steel H-frame structures.

    The company is currently holdingpublic meetings to discuss the projectwith local residents. It has hosted apublic meeting on February 27, 2014 inWar.

    The company is likely to completethe project in 2017.

    ATC seeks Wisconsin PSC approval fortwo transmission line projects

    American Transmission Company(ATC) has filed applications for two ofits projects with Wisconsin PSC.

    The first project includes rebuildingof an existing 69 kV transmission linebetween Dyckesville and Sturgeon Bay,Wisconsin.

    The line was built in the 1930s andneeds to be improved to assure electricreliability in the area.

    Under this rebuilding project, ATCwill install H-frame structures along the25 mile (40.25 km) line to replace theexisting single-pole structures installedalong the line. The project is likely tocost about USD23 million.

    Subject to approval from theWisconsin PSC, construction of the lineis likely to start in September 2015 andbecome operational by July 2016.

    The second project entails re-building of a 12.5 mile (20.13 km), 138 kVtransmission line in western KenoshaCounty.

    The proposed Paris-Albers re-buildproject will run from the Paris substationin Paris, Wisconsin, to the Alberssubstation in Kenosha.

    The project will involve stringingnew wires and replacing aging woodtransmission poles with new wood andsteel poles. No new RoW would berequired for the project.

    The company is likely to spend aboutUSD12.2 million on this project to ensuresafe and reliable transmissionoperations of the power line in thefuture.

    Subject to approval from the statePSC, construction works of the projectis likely to start in late 2014 to meet thein-service date of early 2015.

    LATIN AMERICA

    Brazilian Eletrobras to spend BRL13.9billion on Brazilian power sectorexpansion in 2014

    Brazilian power utility Centrais EletricasBrasileiras S.A. (Eletrobras) hasplanned to spend BRL13.9 billion in 2014.Of this, BRL9.64 billion will be spent onEletrobras own investments, while theremainder will be invested in jointprojects with other companies.

    The power generation segment willreceive the bulk of the investmentamount of BRL1.6 billion, with aboutBRL3.45 billion and BRL2.29 billion spenton transmission and distributionsegments respectively.

    Eletrobras will spend BRL865.8million on maintenance of existinggeneration assets, and BRL613.6 millionand BRL275.3 million on themaintenance of existing transmissionand distribution assets respectively.

    Another BRL774.8 million will beallocated for research, infrastructureand environmental projects.

    (BRL1=USD0.42)

    Brazilian government to disburse BRL7.12billion under Inova Energia Program

    The Brazilian government has plannedto disburse BRL7.12 billion under thefederal Inova Energia Program, whichwas initiated in April 2013.

    The programme foresees funding ofsmart grid, ultra-high voltagetransmission, and solar and wind powergeneration projects, and electric vehicledevelopment projects. Of the totalinvestment amount, BRL1.2 billion will beprovided by Brazilian Financiadora deEstudos e Projetos or Financing Agencyfor Studies and Projects (FINEP), BRL1.2billion from Banco Nacional deDesenvolvimento Econmico e Social(BNDES) or the National DevelopmentBank of Brazil, and BRL600 million fromthe countrys energy regulator AgenciaNacional de Energia Eletrica (ANEEL).

    (BRL1=USD0.42)

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    Cemig to invest BRL527 million for SoccerCup in Brazil

    State-owned power utilities, CompanhiaEnergetica de Minas Gerais (Cemig) hasplanned to invest about BRL527 millionto upgrade its power system for the 2014Soccer Cup.

    Under this, the company will investin upgrading power network of BeloHorizonte, capital of southeasternMinas Gerais state. Expansion at theJaboticatubas and Santa Luzia 4 powersubstations has already beencompleted with the addition of 65 MVAcapacity. The company has alsocompleted the upgrades of four othersubstations, and has built 72 km of newhigh-tension distribution lines. Cemigalso carried out upgrades of low-tensionnetworks around the Mineirao stadium(the main World Cup venue), and plansto acquire six mobile substations in May2014.

    Of the total investment, BRL161million is being invested in themodernisation of Cemigs undergroundenergy system in Belo Horizonte.

    Apart from the BRL527 millioninvestment in projects related to theWorld Cup venue, Cemig is investingover BRL 241 million in other upgradesin the metropolitan region of BeloHorizonte, such as the construction ofNova Lima 7 and BH Calafatesubstations.

    (BRL1=USD0.42)

    Brazilian Copel plans to invest BRL100million in Curitiba

    Brazils state-owned power utilityCompanhia Paranaense de Energia(Copel) plans to invest BRL58.4 millionin adding new transmission lines in themetropolitan region of Curitiba, statecapital of Parana.

    Under this the company will add twopower transformers of 300 MVAcapacity at the Curitiba Norte substationlocated at Itaperucu municipality toconnect it with the 138 kV distributionsystem of the region. In addition, Copelwill build a 33 km, 230 kV transmissionline to connect the Curitiba Norte andBateias substations, while passingthrough the municipalities of CampoLargo, Campo Magro, AlmiranteTamandare, Itaperucu and Rio Brancodo Sul. The projects are likely to be

    completed by July 2016 and willgenerate annual revenue of aboutBRL6.7 million.

    The project was awarded to Copelsgeneration and transmission unit CopelGT at the Brazilian governmentstransmission projects auction held inDecember 2013.

    The project is part of the companyslarger project worth BRL100 million, toimprove the power network of Curitiba,which also includes construction of theSanta Quiteria and Curitiba Lestesubstations, new transmission lines andexpansion of existing lines, all to becarried out in 2014.

    (BRL1=USD0.42)

    Brazilian ANEEL awards concessioncontract for Belo Monte transmissionline project

    Brazilian energy regulator ANEELhosted transmission concession biddingon February 7, 2014, to award a BRL4billion transmission project associatedwith the BRL19 billion Belo Montehydroelectric power plant (HPP).

    The 11.2 GW Belo Monte powercomplex is located on the Xingu Riverin the northern state of Par. Forevacuating power from the HPP, a 2,140km long, 800 kV HVDC line from theXingu substation to the Estreitosubstation in Minas Gerais state is beingplanned. It also includes constructionof the 500 kV/800 kV Xingu substationand 800 kV/500 kV Estreito substation.The line is likely to start operating byearly 2018.

    The project has been awarded to theIE Belo Monte consortium formed bythe companies Furnas Central ElectricSA (Furnas) (24.5 per cent), CentraisEltricas do Norte do Brasil S.A(Eletronorte) (24.5 per cent) and StateGrid Corporation of China (SGCC) (51per cent).

    The consortium bid for BRL434.65million, representing a discount of about38 per cent.

    ANEEL set the Receita AnualPermitida (RAP) or annual permittedrevenue limit for the project at BRL701million for the project.

    Construction of the project is likelyto take about 44 to 46 months.

    (BRL1=USD0.42)

    Delay in grid connections to wind farmprojects causing power outages in Brazil

    Though the country is facing powershortage due to reduction in hydropower generation caused by drought,about 48 wind farms in the country arestanding idle due to unavailability of gridconnectivity.

    Brazilian federal power utilityCompanhia Hidro Eletrica do SaoFrancisco (Chesf ), a subsidiary ofEletrobras, is running behind schedulein completing transmission projects forconnecting its wind farms to the grid.These wind farm projects includeRenova Energia SA and CPFL EnergiasRenovaveis SA, which have thecapacity to supply power to about 3million consumers. They are part of thegovernments plan to double the shareof energy generated form wind,biomass and small hydro plants by2022.

    Inspite of facing power shortage,consumers are required to pay for theunutilised wind power as per theminimum purchase guarantee contractsigned by the government with windfarm developers.

    Presently, consumers are payingabout BRL560 million for unutilised windpower and BRL3 billion for the thermalpower supplied by the government dueto unavailability of additional windpower.

    The countrys energy regulatorANEEL has fined Chesf BRL12 millionfor delaying the commissioning of itstransmission projects.

    As per Chesf, delays in completingthese transmission line projects aremainly attributed to delays in receivingenvironmental licenses, propertynegotiations and archaeologicalfindings, and it is likely to appeal againstthe fine imposed by ANEEL.

    Chesf plans to complete all thedelayed transmission projects by theend of 2014. Presently, Chesf is workingon about 100 power transmissionprojects.

    The rising gap between the powerdemand and supply in the country isleading to frequent power outages justwhen Brazil is getting ready to host theFIFA World Cup event. A recent poweroutage on February 4, 2014, affectedabout 6 million people in 11 states.

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    Brazilian ANEEL ratifies result ofDecember 2013 transmission lineauction

    Brazilian energy regulator ANEELratified the result of the transmissionconcession auction held on December13, 2013.

    During the auction, five transmissionline projects with cumulative capacityof 531 km and three substations in thestates of Minas Gerais, Maranhao,Piaui, Tocantins and Ceara, wereawarded with an average discount rateof 5.64 per cent.

    Construction of the power lines andsubstations is required to be completedin 22 to 36 months after the signing ofthe concession agreements.

    Brazilian AES Eletropaulo invests BRL300million to upgrade power network

    Brazilian power supplier AESEletropaulo, a unit of AES Corporation,has invested about BRL300 million in 18power projects to strengthen thecountrys power network for FIFA 2014Soccer Cup to be held in June and July.

    Among the already completedprojects are the power connections ofComplexo Anhanguera Casa Verde,Complexo Ermelino Matarazzo, LinhaNordeste V.Olivia, LDA Tiradentes,Ramal Guainazes, and LTA PiratiningaBandeirantes/Piratininga Henry Borden/RAE Lubeca.

    During the end of January 2014,Eletropaulo inaugurated an electricityinstallation at the Arena Corinthiansstadium, in Sao Paulo city, southeasternBrazil, with an investment of BRL12million. To supply power to the stadium,two 13.8 kV distribution circuits with totalline length of 12.6 km will be constructedby March 2014.

    Brazilian Eletrosul energises Ijui 2power substation

    Brazil-based power firm EletrosulCentrais Eltricas S.A. (Eletrosul) hasenergised its Ijui 2 power substationwith an investment of BRL30 million.

    The 166 MVA substation is locatedin Ijui municipality, in southern RioGrande do Sul state. The project isincluded in the Brazilian governmentsGrowth Acceleration Programme(PAC), which was initiated in 2007.

    The substation forms part of thetransmission system planned toevacuate the output of power plants ofpower firm Companhia Estadual deGeracao e Transmissao de EnergiaEletrica (CEEE-GT) located on JacuiRiver.

    The substation is connected with RioGrande do Sul to the SistemaInterconectado Nacional (SIN) or thenational interconnected system via a230 kV line to Eletrosuls substation inSanto Angelo.

    Together with the new substationsCaxias 6 and Nova Petropolis 2 andupgradation of the Lajeado Grandesubstation, Eletrosuls new facility willboost energy supply in the state. Theseprojects require about BRL110 millioninvestments.

    MME includes transmission projects inREIDI in Brazil

    The Ministry of Mines and Energy(MME) of Brazil has included thetransmission network upgradationprojects of local power utility GoiasTransmissao, Companhia deTransmisso de Energia EltricaPaulista SA (CTEEP) and power firmEletrosul in the governments IncentiveRegime for Infrastructure DevelopmentProgramme (REIDI).

    Goias Transmissaos projects arelocated in the central-western region ofGoias state, which is also the concessionare of the Goias Transmissao.

    CTEEPs project includesreplacement of a connection point in aTR3 138/13.8 kV transformer and of aconnection module in a 13.8 kVtransformer. These works will be carriedout at CTEEPs Itapeva substation. Theproject is scheduled to be completed byMay 31, 2015.

    Eletrosuls BRL13.2 million worthprojects include upgradation of a 230 kVline at the Joinville Norte powersubstation in Florianopolis, the capitalof southern Santa Catarina state. Theproject has been scheduled to becompleted by February 26, 2015.

    The REIDI was launched in 2007 toprovide grants tax incentives tocompanies investing in infrastructureprojects in the transportation, ports,energy, sanitation and irrigation sectors.

    (BRL1=USD0.42)

    Escelsa EDP launches Xuri electricitysubstation in Brazil

    Brazils Escelsa EDP, EDP Groups powerdistributor located in Esprito Santo State,has begun construction of the Xurielectricity substation, located in itsconcession area in the municipality ofVitoria, the capital of southeasternEspirito Santo state. The substation willhave a capacity of 9.2 MVA and will beremotely controlled by the companysoperations centre in Carapina. The facilitywill benefit more than 6,000 residents ofthe fast-growing Great Vitoria region. Thevalue of the investment has not beenannounced as yet.

    Argentina launches 132 kV EsperanzaElCalafate transmission line project

    Argentinas government has launchedthe 132 kV Esperanza-El Calafate linethat connects the El Calafate area inthe southern province of Santa Cruz, tothe national power grid. Constructionof the line and associated substation isestimated to cost about ARS378 million.

    Argentina is also building a 220 kVline between Esperanza and Rio Turbiothat will connect a 240 MW thermal plantto the national grid by the end of 2014. Inaddition, the government is expandingthe provincial network of Santa Cruz with132 kV lines in the northern part of theprovince, to the cities of Los Antiguos,Perito Moreno, Caleta Olivia, San Julianand Gobernador Gregores, with aninvestment of ARS1.275 billion.

    (ARS1=USD0.13)

    Interchile presents EID for CardonesPolpaico transmission line project

    Interchile, a subsidiary in Chile ofColombian state-run grid operatorInterconexion Electrica (ISA), haspresented the environmental impactdeclaration (EID) for its CardonesPolpaico transmission line project.

    The project entails the constructionof a 750 km double-circuit, 500 kVtransmission line from the town ofCardones in the Salta province toPolpaico in the Santiago region. The lineaims to increase the power transmissioncapacity from central to northern Chile.The project is part of the 2011 TrunkTransmission System Expansion Plan forthe Sistema Interconectado Central(SIC) or the Central Interconnected Grid.

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    The USD600-800 million projectforms the first phase of theinterconnection between Chiles SICand the Sistema Interconectado delNorte Grande (SING), or the northernpower grid. The line will be implementedin three sections.

    The CardonesMaitencillo line willbe 132.5 km long and involve aninvestment of USD79.32 million.

    The MaitencilloPan de Azcar linewill span 209.5 km and be constructedat a cost of USD130.11 million, and thePan de AzcarPolpaico line will run401.8 km and involve an investment ofUSD280 million. All three sections of theline are scheduled to be commissionedin 2016.

    Chile-based ProInversion to awardAzangaroPuno line project

    The Ministry of Energy and Mines ofPeru has allowed the countrysinvestment promotion agencyProInversion to prepare a tender andaward construction of the AzangaroJuliacaPuno transmission line project.

    Under the project, a 114 km, 220 kVtransmission line will be constructedalong with the expansion of the Puno,Juliaca and Azangaro substations andconstruction of the Juliaca Nueva andAzangaro Nueva substations.