Passing Providers Explicitly from parent module to child modules

I am working on a module that does the following:

  1. create a azure subscription
  2. create a bunch of resources under this subscription

I need to get the ID of the subscription first and pass it on as a Providers configuration to the other modules.

I tried to do exactly what was explained in the documentation about explicitly passing providers in modules but I don’t seem to get it to work.

my parent module has a providers definition like this:
provider “azurerm” {

alias = “alternate”

subscription_id = module.subscription.subscription_id

}

my child module has a reference to this provider like this:
module “resourcegroup” {

source = “./resourcegroup/azurerm”

version = “1.0.1”

location = “westeurope”

resource_group_name = var.resourcegroup_resource_group_name

tags = var.resourcegroup_tags

providers = {

azurerm = azurerm.alternate

}
}

then my child module has a providers block like this:
terraform {

required_providers {

azurerm = {

  source  = "hashicorp/azurerm"

  configuration_aliases = [azurerm.alternate]

}

}

}

resource “azurerm_resource_group” “rg” {

provider = azurerm.alternate

name = var.resource_group_name

location = var.location

tags = var.tags

}

but with this I am not able to load the child module into TFE, the error I get is:

Version 1.0.1 Error: error loading the module: Variables not allowed: Variables may not be used here. (in main.tf on line 5)

I am not sure what I am doing wrong here? it seems that variables are not allowed within the required_providers block.