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Brazil awards USD 3.4bn of transmission lines in Dec 20 auction

Author: Bahador. License: Creative Commons, Attribution-ShareAlike 2.0 Generic

December 21 (Renewables Now) - Brazil's power sector regulator Aneel said on Thursday that the winning projects in the country's latest energy transmission auction represent BRL 13.2 billion (USD 3.43bn/EUR 2.99bn) in investments.

Neoenergia SA, a unit of Spain’s Iberdrola SA (BME:IBE), was the biggest buyer with four lots purchased, the regulatory agency said.

The auction has achieved a significant average discount of 46%. All 16 transmission batches were sold, representing 7,152 km (4,444 miles) of transmission lines and substations with a total capacity of 14,819 MVA.

The construction works for these power lines, which are going to be built in 13 states, have a 30-year concession term with an implementation period of 48 to 60 months.

Included in this auction was the transmission package previously held by regional energy firm Eletrosul. The company lost the rights to the projects when it failed to close a deal over their transfer to Shanghai Electric Group Co Ltd (SHA:601727).

Sandoval Feitosa, the auction's director-rapporteur, said that the renegotiation of the contracts for the former Eletrosul lots is very good for consumers because it represents savings of BRL 37.4 million over the next 26 years.

(BRL 1 = USD 0.26/EUR 0.23)

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Browse all articles from Lucas Morais

Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

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