Study Of Transmission Lines In Brazil Franchises Project Technical Due Diligence

The market prospect of Brazil transmission building is broad, according to their State-issued power building plan, the annual growth of electricity demand is about5.5percent, electricity consumption is expected to grow from3966millions k.Wh in2008to6042millions k.Wh in2017, invest of transmission is34to40billions dollars every year, the transmission line construction is about3000to5000kilometers each year.After completion of the acquisition of the franchise, the State power company of Brazil’s power grid will be one of the main external power investment, it will be great significance for establishing brand of the State grid Corporation in domestic and foreign, and exporting of electromechanical devices of China. Therefore, we can consider establish a State power grid company wholly or owned transmission company in Brazil, will acquire assets into the company, if possible, we can negotiate with the seller all over the operation and maintenance of PLENA in Brasil management team, as well as provides the other four franchises project for operation and maintenance services, as its operating agent.The purpose the technical due diligence is investigation of the subject in depth of health status of network equipment, technology and maintenance capabilities, find out the mode of operation and maintenance, spare parts storage and the quality of personnel, preliminary assessment of the life of equipment, it make recommendations for the period of funding for future franchise into the calculation, the franchise for a binding offer and determine the subject of valuation. This paper research, analysis and evaluate the power grid assets, equipment life, operating risk and future power grid operation and maintenance and development costs required from the transmission assets, equipment operation maintenance, spare parts reserve, operation and maintenance management and control model, the relationship with Brazil scheduling ONS, grid emergency management. And reviewes power transmission equipment for the overall situation, especially for the information provided to seller incomplete information focus of the secondary device a field investigation, is expected to be1.5times pre-transformation of secondary equipment valuation should be adjusted, propose considering technical innovation of secondary equipment in the current valuation during franchises.