By Brazil Stock Guide – ISA Energia Brasil SA (B3: ISAE3, ISAE4) obtained a preliminary environmental license for the Itatiaia Project, a 2.7 billion-real ($) power transmission development connecting Minas Gerais and Rio de Janeiro, according to Broadcast.
The investment figure reflects capital expenditure recognized by Brazilian electricity regulator Aneel and adjusted for inflation through March 2026. The preliminary license confirms the project’s environmental viability and allows the company to move forward with subsequent approval stages.
The planned corridor will increase the transmission capacity available to carry renewable power — particularly solar and wind generation — from northern Minas Gerais and Brazil’s Northeast to major consumption centers in the Southeast.
ISA Energia said the development will also strengthen the Northeast-Southeast power flow interconnection, known as FNESE, improving flexibility and reliability across Brazil’s National Interconnected System.
“Obtaining the Preliminary License for this project is fundamental, as it will strengthen the electrical infrastructure needed for economic growth in Minas Gerais and Rio de Janeiro, while generating more than 4,000 direct and indirect jobs during construction,” Dayron Urrego, ISA Energia Brasil’s executive director of projects, said in a statement.
The project is expected to expand the system’s operating margin and reduce transmission constraints and curtailment. The latter occurs when electricity generation, including output from renewable plants, must be restricted because the grid lacks sufficient capacity to transport or absorb the available supply.
More than 1,000 kilometers of circuits
The Itatiaia Project will comprise more than 995 transmission towers, using about 29,000 metric tons of steel structures. ISA Energia also plans to install more than 1,000 kilometers of circuits and 35 inductive reactors operating at 500 kilovolts.
The company will build the Leopoldina 2 substation in Minas Gerais, including a 500-kilovolt high-voltage yard designed to handle large volumes of power over long distances.
The plan also includes expansions at the Governador Valadares 6 substation in Minas Gerais, which will connect with the Piraquê Project, and at the Terminal Rio substation in Rio de Janeiro. Double-circuit transmission lines will link the three facilities, creating a new high-voltage corridor.
The infrastructure is designed to support greater electricity demand, increase grid security and improve conditions for industrial and other power-intensive investments in the regions served by the project.
Operations scheduled for March 2029
ISA Energia acquired the concession for the project as part of Lot 7 in Aneel’s 2023 transmission auction. The federal government subsequently classified Itatiaia as a priority infrastructure development under its New Growth Acceleration Program, known as Novo PAC.
“The Itatiaia Project is considered strategic for the expansion of Brazil’s electricity infrastructure, ensuring greater flexibility and reliability for the system,” the company said. “It is also recognized as a priority infrastructure project under the New PAC, with the energization deadline set by Aneel for March 2029.”
Leave a Reply