Photo by Shutterstock
Energy transmission infrastructure
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Business Model Description
Provide project financing for large-scale energy transmission
Expand transmission capacity to provide electricity to more Brazilians and enhance energy efficiency by reducing excess carbon emissions
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Auctioning of 52,000 km of transmission lines projected until 2022. (12)
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
- 1) Bertelsmann Stiftung, 2019, https://dashboards.sdgindex.org/#/BRA 2) World Bank, 2019, https://www.worldbank.org/en/news/feature/2019/06/19/lifelines-for-better-development?cid=ECR_LI_worldbank_EN_EXT 3) Globo, 2019, https://g1.globo.com/economia/noticia/2019/02/10/investimento-do-governo-em-infraestrutura-no-ano-passado-e-o-menor-em-dez-anos.ghtml 4) Correio Braziliense, 2018, https://www.correiobraziliense.com.br/app/noticia/economia/2018/11/02/internas_economia,717118/novo-governo-planeja-viabilizar-investimentos-e-r-180-bi-na-infraestr.shtml 5) OECO, 2012, https://www.oeco.org.br/noticias/26650-brasil-perde-20-de-energia-nas-linhas-de-transmissao/ 6) Correio da Bahia, 2018, https://www.correio24horas.com.br/noticia/nid/mais-de-50-dos-municipios-baianos-tem-problemas-de-saude-por-falta-de-saneamento/ 7) Agénor, Pierre-Richard, and Otaviano Canuto. 2013. “Gender Equality and Economic Growth in Brazil.” The World Bank, https://ems.gtc.ox.ac.uk/sites/ems.gtc.ox.ac.uk/files/EP109.pdf 8) Associação Nacional dos Consumidores de Energia, 2016, http://www.anacebrasil.org.br/noticias/grandes-apagoes-viram-rotina-no-brasil/ 9) BNDES, 2018, https://web.bndes.gov.br/bib/jspui/bitstream/1408/16040/3/PRLiv214078_Visao_2035_compl_P.pdf
- 10) Globo, 2016, http://g1.globo.com/bom-dia-brasil/noticia/2016/01/por-falta-de-linhas-de-transmissao-13-usinas-eolicas-estao-paradas-no-ne.html 11) BBC, 2013, https://www.bbc.com/portuguese/noticias/2013/06/130604_energia_eolica_mdb 12) Upside Finance, 2014, http://upsidefinance.com.br/cms/uploads/news/id54/Brazilian%20Electrical%20Power%20Sector.pdf 13) Instituto Acende, 2018, http://www.acendebrasil.com.br/media/estudos/2017_WhitePaper_20_FinanciamentoSetorEletrico.pdf 14) Jornal do Comércio, 2018, https://www.jornaldocomercio.com_conteudo/especiais/perspectivas_2019/2018/12/660737-obras-bilionarias-chegam-a-area-de-transmissao.html 15) Reuters, 2016, https://br.reuters.com/article/businessNews/idBRKCN12622B 16) Abesco, 2015, http://www.abesco.com.br/novidade/capacidade-de-transmissao-de-energia-pode-se-esgotar-em-2019/ 17) OECO, 2012, https://www.oeco.org.br/noticias/26650-brasil-perde-20-de-energia-nas-linhas-de-transmissao/ 18) Tracking SDG7: The Energy Progress Report. “Brazil | Tracking SDG 7.” https://trackingsdg7.esmap.org/country/brazil. 19) United Nations Global SDG Database. “SDG Indicators.” https://unstats.un.org/sdgs/indicators/database/. 20) Elecnor. “Electricity Transmission Systems in Brazil | Elecnor.Com.” https://www.elecnor.com/projects/electricity-transmission-systems-in-brazil. 21) “Sterlite Power Is about to Finish Its First Power Transmission Project in Brazil 2 Years in Advance.” 2019. Sterlite Power. January 28, 2019. https://www.sterlitepower.com/br/news/detail/sterlite-power-about-finish-its-first-power-transmission-project-brazil-2-years-advance.