Large groups in the electricity sector win transmission auction

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The energy transmission auction held this Friday (17) ended with all lots won, at an average discount of 50%, and had the predominance of large groups in the electricity sector among the winners.

Taesa (lot 1, in Paraná and São Paulo), the Indian Sterlite (lot 2, in Bahia), the Rialma group (lot 3, in Bahia), Neoenergia (lot 4, in Minas Gerais) and Energisa (lot 5, in Amapá).

The five projects offered to the market involve 902 kilometers of lines, in addition to three energy substations, in five states: Amapá, Bahia, Minas Gerais, Paraná and São Paulo. In all, around R$2.9 billion in investments were contracted for the next few years.

As expected by the market, the tender attracted strong competition among a diverse profile of investors — from traditional companies in the sector to financial investors and construction and engineering companies.

Three of the five projects offered were disputed live, starting with bids with discounts of over 45%.

Traditional transmission companies such as ISA Cteep and Alupar, and electric companies Engie Brasil, EDP Brasil, Cemig and Copel also participated in the event. However, these groups did not acquire assets.

The auction’s average discount was 50% of the maximum allowed annual revenue (RAP), a rate above the one recorded in the event held in June this year (48.12%), and slightly below the larger bids that took place in 2020 and 2019, when the discount reached 60%.

According to Efrain Cruz, director of Aneel (National Electric Energy Agency), the discount of the auction will guarantee savings of more than R$ 5 billion to energy consumers.

“To a large extent, we saved so that the consumer does not have a 3% increase in the tariff,” said Cruz, speaking after the closing of the tender, which was broadcast on TV B3.

Aneel has already put the next transmission auction, scheduled for June 2022, for public consultation. The event will be the second largest since 2018, with the offer of 13 lots involving investments of R$9.5 billion.

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