Brazil’s first power transmission auction of 2024 concluded a successful series of three major tenders that will result in investments of around 60bn reais (US$12bn).
The contributions are mainly aimed at transporting energy from solar and wind power plants in the northeast to the southeast, the country’s main load center.
In all, the winning companies have committed to investing in 17,055km of transmission lines and 19,440MVA of transformation capacity.
Gianluca Di Mattina, investment specialist at Hike Capital, said the auctions play a crucial role in the development and modernization of the country’s electricity infrastructure, guaranteeing energy security and enabling economic growth.
Their importance goes beyond direct investments, he said, as they stimulate competition between participants and companies, which can result in more efficient bids and lower costs for end consumers.
“In addition, by increasing transmission capacity, they facilitate the integration of new renewable energy sources into the country’s electricity matrix, contributing to environmental sustainability and the diversification of the grid,” Di Mattina told BNamericas.
Franceli Jodas, a partner at KPMG, believes the latest auction reinforced the importance of the energy sector in attracting infrastructure investments, as well as demonstrating the maintenance of regulatory stability.
“The transmission sector is the most attractive due to its lower risk rate, compared to energy generation or distribution,” she told BNamericas.
Jodas highlighted that federal energy research company EPE‘s 10-year plan presented the outlook for transmission demand, including for new lines to transport renewable energies or for substation reinforcements.
“The hydrogen agenda is advancing in the legislature, as are other renewables, and all this energy, which could be used to stimulate local industry, will need to be transported to industrial centers,” said Jodas.
The consultant said that companies are capitalizing to take advantage of the next windows of opportunity and adjust their models to a new reality of efficiency.
BNamericas details below the expected contributions per company, considering the lots won in the two 2023 auctions and in the process carried out last week by regulator Aneel.
BRASILUZ ELETRIFICAÇÃO E ELETRÔNICA
At 143mn reais, the company’s capex is focused on a 1,500MVA substation in Rio de Janeiro state.
CELEOS REDES
Its investment commitment includes 2.2bn reais for the 714km Xingó-Camaçari II transmission line in the states of Bahia and Sergipe, and a 388km line connecting the Marimbondo 2 and Campinas substations between Minas Gerais and São Paulo.
COX BRASIL
The lot won by the company includes the 104km Itararé II-Capão Bonito transmission line and a substation in São Paulo state, with an investment of around 330mn reais.
CYMI CONSTRUÇÕES E PARTICIPAÇÕES
The company is due to invest 921mn reais in 349km of lines in Minas Gerais.
The Portuguese multinational has around 3bn reais in investments planned for 1,388km of lines, as well as substations, in the states of Piauí, Tocantins, Bahia and Maranhão.
The country’s largest electricity company has pledged to invest around 6.4bn reais in 2,298km of transmission lines and substations in the states of Minas Gerais, Ceará, Piauí, Paraíba, Pernambuco, Alagoas and Bahia.
The company will invest 933mn reais in 394km of transmission lines in the states of Maranhão and Piauí.
ENGIE BRASIL ENERGIA
Its portfolio includes investments of 2.67bn reais to build 1,006km of transmission lines in Bahia, Minas Gerais and Espírito Santo.
FIP DEVELOPMENT FUND WAREHOUSE
BTG Pactual‘s investment fund will invest 6.5bn reais in 1,998km of lines and substations in the states of Rio Grande do Norte, Paraíba, Pernambuco, Alagoas, Bahia and Minas Gerais.
The company has planned investments totaling 5.47bn reais for the construction of:
– 1,116km of transmission lines in Bahia and Minas Gerais, as well as the construction of the 500kV Campo Formoso II, Barra II and Correntina substations (a lot awarded to the company after the disqualification of the Gênesis Consortium);
– 1,044km of lines in Minas Gerais and Rio de Janeiro, as well as a new 500kV yard at the Leopoldina 2 substation; and
– Água Vermelha 500/138kV substation in Minas Gerais.
GÊNESIS
The consortium formed by The Best Car and Entec has an investment commitment estimated at 260mn reais.
The amount is earmarked for the construction of the 38km Recife II-Bongi line in Pernambuco.
Formed by Alupar Investimentos and Mercury Investimentos, the consortium will earmark 2.6bn reais for the construction of the 660km Silvânia-Nova Ponte 3 line and the 442km Nova Ponte 3-Ribeirão Preto line.
OLYMPUS XVII
The consortium formed by Alupar Investimento and Infra II Investment has capex of 1.4bn reais earmarked for 509km of lines in Minas Gerais.
PARANÁ
The consortium formed by Mega Energy Participações, Enermais Energia, Interalli Holding e Participações and AMG Participações em Energia will invest 222mn reais in a 75km line in Mato Grosso do Sul.
RIALMA ADMINISTRAÇÃO E PARTICIPAÇÕES
The company has planned capex of 4.35bn reais for the construction of 1,614km of transmission lines in the states of Bahia and Minas Gerais.
STATE GRID BRAZIL HOLDING
The Chinese company will invest 18bn reais in the construction of 2,981km of transmission lines in the states of Maranhão, Tocantins and Goiás.
