Brazil denies Eletrosul's appeal over transmission lots decision

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

October 24 (Renewables Now) - Brazil's Aneel has denied the appeal lodged by Eletrosul over the power sector regulator's decision to recommend the termination of the concession deal concerning BRL 4.1 billion (USD 1.1bn/EUR 967m) worth of transmission projects.

Eletrosul, a regional unit of Brazilian electric utility Centrais Eletricas Brasileiras SA (BVMF:ELET3), better known as Eletrobras, was awarded the right to invest in the construction of 17 transmission projects and eight substations in a previous auction, but lost the lots after failing to reach a deal over their transfer.

The company had difficulties to meet the deadline set by the federal government and in June 2017 presented to Aneel a plan to transfer control of its concessions to Shanghai Electric Group Co Ltd (SHA:601727). The two companies negotiated for more than a year to formalise the move but could not reach an agreement and the Chinese party eventually announced it was stepping back.

Because of this, Aneel plans to offer the transmission batches in the December 20 transmission auction, the watchdog reiterated on Tuesday.

(BRL 1 = USD 0.27/EUR 0.24)

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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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