Electric Power: The week in 10 stories

Argentina plans to issue treasury bills to finance infrastructure and renewable energy projects. The first issue, worth US$4.5bn, will be to finance the country's trust fund for the development of renewable energy.

Two power transmission companies filed transport capacity access requests to connect generation capacity to the national SADI grid: Transba, for Vientos Las Pasturas' 150MW Las Pasturas wind farm in Buenos Aires province, and Transnoa, for Sullair Argentina's 89MW thermoelectric plant in Jujuy province. The energy and mining ministry also authorized Kosten to operate in the wholesale power market and connect to SADI with its 24MW Kosten wind farm in Chubut province.

Investment and foreign trade bank BICE allocated US$200mn to finance renewable energy projects awarded through the RenovAr public auction program, providing up to 200mn pesos (US$11.6mn) per project for 15 years, financing up to 70% of the total investment required.

BRAZIL

Iberdrola incorporated the businesses of its Brazilian subsidiary Elektro Holdings into Neoenergia, describing the move as "one of the most important corporate operations ever." The resulting company, which brings together Neoenergia and Elektro's electricity distribution, transmission, generation and retail assets and services, is 52.45% controlled by Iberdrola, 38.21% by Previ and 9.35% by Banco de Brasil. The agreement between the partners includes Iberdrola's commitment to float the new company on the stock exchange.

Renova Energia will sell its 605MW Umburanas wind project in Bahia state to Engie Brasil Energia for 15mn reais (US$4.78mn), a deal subject to regulatory approval, among other conditions.

Demonstrations began by some of Eletrobrás' worker unions, such as that at subsidiary Furnas, against the Brazilian government's decision to divest its controlling stake in the state-run power holding company. Mines and energy minister Fernando Coelho Filho said the government will give details of the divestment model towards the end of August.

MEXICO

Mexico will invest 11.6bn pesos (US$646mn) over the next eight years to implement a smart grid, giving the electricity network greater reliability, flexibility and planning capacity. The country also plans to invest more than 14.6bn pesos this year in the expansion and modernization of the transmission and distribution network.

State utility subsidiary CFE Calificados became the first company to act as a contingency supplier in the country's wholesale power market and will supply large-scale industrial clients with electricity in the event that their private supplier fails to meet its commitments with national energy control center Cenace, as well as representing electricity generators that are exempt from the wholesale market should they require it.

PERU

Brazilian conglomerate Odebrecht announced it will sell its Peru Chaglla hydroelectric plant (pictured) to a consortium headed by China Three Gorges Corporation for US$1.39bn. The consortium also comprises Hubei Energy, Ace Investments Fund II and CNIC Corporation.

Environmental authorities approved the 40MW Churo hydroelectric project planned for Lima region, and which will cost upward of US$60mn and will supply the national grid, using water from the Cañete and Huantán rivers in Yauyos province.