China Stakes Its Claim in Latin American Energy:

In 2020, Brazil accounted for 60% of State Grid’s investments outside of China. 13 China’s Ultra High Voltage (UHV) transmission technology gives the country an edge in power system projects. This state-of- the-art technology is being used in key Latin American markets by Chinese companies like State Grid. It reduces power losses and can handle intermittent power supplies from renewables better than current systems. Projects installing China’s UHV systems will use Chinese equipment and technology in their construction and operation, as well as Chinese personnel. Confident that storage and electric mobility technologies will achieve economies of scale similar to those of solar and wind, China is positioned to become a major supplier to LAC. Chinese companies are already exporting electric buses, cars, and bicycles to South America even though the technology is still uncompetitive with conventional modes of transportation. Promoting electric mobility through the region gives Chinese manufacturers a head-start. Supported by China’s domestic national subsidy, the international expansion of new grid and energy markets generates significant economic benefits for Chinese enterprises, which can offer high quality,

A pedestrian walks past a branch of State Grid Corporation of China in Yichang city in central China's Hubei province . Photo: Imaginechina Limited / Alamy Stock Photo

State Grid’s investments in Brazil now total $12.4 billion and include Brazil’s largest private energy company, CPFL Energia S.A., which is building the transmission network for the country’s giant Belo Monte hydroelectric plant. 11 State Grid was reported to have plans for a $38 billion investment in Brazil’s transmission and generation infrastructure by 2023.12.

INSTITUTE OF THE AMERICAS

7