Brazil transmission line auction ends with over 6,000 km in new projects

Y Entec Co

30/06/2023 20:47

SAO PAULO, June 30 (Reuters) - Brazil concluded an
auction on Friday for energy transmission lines, with
lesser-known bidders surprisingly securing some of the largest
developments of the over 6,000 kilometers of new lines
auctioned.
    Friday's auction event is the first of three tenders until
2024 aimed at boosting Brazil's capacity to transport renewable
energy generated mainly in the northeast to the country's south
and southeast.
    The auctioned projects are expected to total 6,184
kilometers (3,843 miles) of new lines, as well as fortifications
to a substation.
    The auction's largest project, a 1,600-kilometer
(990-mile)transmission line known as lot 2, went to Rialma
Administracao e Participacoes with a 51% discount compared to
the maximum revenue allowed.
    The company, which operates in the energy, agriculture and
mining sectors, has committed to building the line between the
states of Bahia and Minas Gerais and investing an estimated 4.35
billion reais ($908.29 million).
    The second-largest development in the auction, lot 1, was
purchased by a consortium formed by The Best Car Transporte de
Cargas and Entec, with a 66.18% discount. 
    Eletrobras won a transmission lot in Minas Gerais with
786.62 million reais in expected investment. Engie won a large
lot between Bahia, Minas Gerais and Espirito Santo with 2.67
billion reais in investments.
    ISA CTEEP, meanwhile, won a project worth 2.34 billion reais
in investments and another of a smaller size for reinforcements
in a substation.
    Despite the market's great interest in investing in the
segment, the high volume of projects expected to be developed at
the same time could produce bottlenecks, especially in the
equipment supplier industry, according to analysts.
    The government intends to hold another transmission auction
in December, which is expected be the biggest in Brazil's
history, with around 20 billion reais in estimated investments
up for auction.


($1 = 4.7892 reais)

 (Reporting by Letícia Fucuchima; Writing by Carolina Pulice;
Editing by Brendan O'Boyle and Andrea Ricci)
 ((mailto:carolina.pulice@thomsonreuters.com;))