Axia Energia seeks R$ 680 million for Rio Grande do Norte transmission project

Axia Energia has signed a mandate letter with IDB Invest, the private sector arm of the Inter-American Development Bank (IDB), to structure financing of up to R$ 680 million. The funds are intended for the development and implementation of Transmission Lot 7 in Rio Grande do Norte, Brazil.

The project, which was awarded during an Aneel auction last year, includes the installation of three 500 kV synchronous compensators at the Açu III and João Câmara III substations. These components are designed to control voltage and enhance grid stability, which is critical for the Northeast region due to its high concentration of renewable energy sources like wind and solar.

Construction is expected to take 42 months and is estimated to create 2,299 jobs during the implementation phase. The project carries a contracted Annual Allowed Revenue (RAP) of R$ 71.9 million. While the mandate letter initiates negotiations, final funding remains subject to technical analyses, document negotiations, and internal approvals from IDB Invest.