In the recently concluded auction for transmission projects in Brazil, Sterlite Power emerged as the largest winner, clinching six lots at an investment of roughly US$ 1 bn, securing about 65% of the capex under auction. While most of Brazil's power supply historically came from large hydro power plants, renewable energy is coming up to in a big way to replace hydro and meet the rising power demand. This renewable capacity is generally located far away from the demand centers and require long connections to be served by these lines. These critical projects will largely help move renewable power from northern and north eastern parts of Brazil with southern and southeastern regions where the load centers are located. By 2026, the total electricity consumption of the country is forecasted to increase to 741 TWh, indicating an average annual growth of 3.7% per annum. To cater to this jump in demand, a 64.1 GW expansion in installed capacity of the National Interconnected System (SIN) is planned over the next 10-year period.

(Continued on the next page)