Brazil's environmental protection agency said it has granted Spanish company Isolux Energia a license to operate a power transmission line between the southeastern states of Sao Paulo and Rio de Janeiro.

The 500-kilowatt transmission line will run between Taubate, in Sao Paulo state, and Nova Iguacu, on Rio de Janeiro city's outskirts, the agency, known as Ibama, said in a statement Friday.

The contract for the transmission line was awarded to Isolux in a 2011 auction.

The line, which will stretch for approximately 257 kilometers (160 miles), will pass through 22 towns and transmit power from hydroelectric dams on the Madeira River.

The license covers the installation of the line as well as construction of the Nova Iguacu substation, the contract for which also was awarded to the Spanish firm by the National Electric Energy Agency, or Aneel, in a 2011 auction. EFE