Transmission auction ends with an average discount of 48,89%

Engie, TAESA and Cox Brasil were crowned winners of the competition with aggressive proposals
Transmission auction ended with an average discount of 48,89%
Image: Reproduction/B3

With a competitive proposal, the Consortium Engie Brasil Transmitter won the largest transmission project bid at the auction held this Friday (27/09) at B3, in São Paulo

Engie offered an Annual Allowable Revenue (AAR) of R$ 242,2 million for Lot 1, representing a discount of 48,14% in relation to the maximum RAP of R$486,4 million, suring Copel, which came in second place with a proposal of R$328,5 million.

After a fierce dispute on speakerphone, the Lot 2 was auctioned by TAESA, which presented an offer of R$ 17,76 million, with a discount of 53,45%, suring FL Transmissão and EDF Brasil.

O Lot 4 was won by Cox Brasil SA, which offered R$12,6 million, a discount of 55,56%, suring the Eneng/Transdata/BRFibra Consortium, which proposed R$13,7 million.

At the end of the auction, the sum of RAP was R$ 282,6 million, resulting in an average discount of 48,89%. This will generate savings of R$8,1 billion for consumers over the 30 years of the concession.

Ivo Nazareno, Auction Secretary of ANEEL, highlighted that energy consumers were the big beneficiaries of the auction, as the significant discounts will help to avoid an increase in electricity rates paid by everyone in Brazil.

In total, 783 km of new transmission lines and substations with a transformation capacity of 1.000 MVA were tendered, totaling investments of approximately R$3,35 billion. The works are expected to generate around 7 direct jobs. The developers will have a period of 42 to 60 months to begin commercial operations of the projects.

One of the innovations of this auction was the re-auctioning of existing projects, which include 162,9 km of lines and 300 MVA in substations, whose current concession expires in July 2025.. According to Nazareno, transmission contracts with future maturity must follow this re-bidding model.

Initially, the auction of Lot 2 was planned. However, the Ministry of Mines and Energy requested the withdrawal of the projects, after identifying implementation risks and operational problems, especially in cases of extreme weather events. The projects are located in Rio Grande do Sul.

Auction lots

Lot 1: comprises 365 km of transmission lines and two substations, benefiting the states of Santa Catarina, Paraná, Minas Gerais, São Paulo and Espírito Santo. The implementation period is 60 months, and the estimated investment is R$ 1,7 billion. This lot also includes the existing installations of 162,9 km of lines and 300 MVA in substations.

Lot 3: includes 2 km of lines and a substation with a capacity of 600 MVA in the state of São Paulo. The implementation period is 42 months, with an estimated investment of R$ 244 million.

Lot 4: It consists of a substation with a transformation capacity of 400 MVA. The construction period is 51 months, and the investment totals R$ 168,2 million.

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Photo by Wagner Freire
Wagner Freire
Wagner Freire is a journalist graduated from FMU. He worked as a reporter for Jornal da Energia, Canal Energy and Agência Estado. Covering the electricity sector since 2011. Has experience in covering events such as energy auctions, conventions, lectures, fairs, congresses and seminars.

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