Brazil's power auction targeted a range of grid improvements, and will save consumers an estimated 5.8bn reals over 30 years
Brazil's second and final power transmission tender of 2022 allocated all the lots offered, with average bids 38pc below the maximum price set by the government.
The auction targeted a broad range of improvements to the grid, with investments taking place in nine states. The largest project aims to increase transmission services to the remote regions of Para and Maranhao states, including the construction of 278km of transmission lines and four substations.
Participants bid the annual cost the government will have to pay for their services. Electricity regulator Aneel estimates that the tender will save consumers R5.8bn over the entire 30-year period of the transmission concessions.
Competition for lot 3, for transmission projects in Parana and Maranhao, was fierce between domestic firm Taesa and Spanish company Elecnor's subsidiary Celeo Redes. Taesa won with a R91.4mn bid, a 48pc discount to the maximum price.
Lot 4 had the highest discount, 51pc below the government's limit at R18.35mn, from France's EdF-owned thermal plant Usina Termeletrica Norte Fluminense. The company will build transmission lines in Rio de Janeiro to connect Acu port and its GNA 1 power station to the grid.
Lot 6 had the lowest discount at 15pc, as consortium Olympus XIV — mainly composed of domestic transmission company Alupar — won with a R69.5mn bid. The group will build transmission lines in Sao Paulo state. Other winners included Minas Gerais state distributor Cemig and Portuguese utility EDP. The selected companies are expected to invest around 3.5bn reals ($662mn) in the projects. Winning bidders will have 42-60 months to complete their projects.
A study by government energy research agency Epe says Brazil needs to invest R22.6bn in transmission infrastructure over the next five years for power generated in the north to be consumed in major population centres in the southeast.
