(Corrects code in 3rd paragraph)
By Wan Xu and Ken Wills
BEIJING, July 4 China's dominant utility firm
State Grid Corp has agreed with Portugal's power grid operator
to set up a technology research and development centre in
Portugal and a joint venture consulting firm, State Grid said in
The firm said on its official website it had signed a
memorandum of understanding (MOU) on Wednesday with Redes
Energeticas Nacionais SGPS SA (REN).
It marks the latest move after State Grid bought
a 25 percent stake in REN earlier this year, and follows recent
news on State Grid's interest in taking over Spain's power grid
operator Red Electrica.
With the MOU: "the two parties will set up technology R&D
centre in Portugal, to provide strong technology support and
business support for REN's sustainable development, and to
expand REN's influence and competitiveness in the Iberian
Peninsula and even in the whole of Europe," according to the
The joint venture consulting firm will help State Grid and
REN to have more power project cooperation in
Portuguese-speaking countries, State Grid said, without
Portuguese media Agencia Financeira reported the joint
consultancy will be built in Brazil, and State Grid will invest
12 million euros in building the technology center in Portugal.
State Grid took its 25 percent stake in REN earlier this
year as part of Portugal's privatisation drive under an
international bailout of its economy.
In May this year, State Grid agreed to buy seven electricity
transmission assets in Brazil from Spanish builder Actividades
de Construcción y Servicios SA (ACS).
In December 2010, State Grid bought seven Brazilian power
transmission concessions with investments totaling nearly $1
(Reporting by Wan Xu and Ken Wills; Editing by Keiron