Two Spanish companies win stakes in an auction of power lines in Brazil

Spanish companies Simi And Celio Networks Two lots were awarded to build and operate transmission lines in Brazil, in an auction held by the government on Friday.

In total, nine lots were auctioned to build and operate 6,184 kilometers of transmission lines, with contracts of 30 years.

The director of the National Electric Energy Agency, Sandoval Vitosa, described the tender as a “great success” and confirmed that it was the largest auction in the sector to be held in Brazil.

Celeo Redes won Lot 6, whose contract provides for the construction of 714 kilometers of 500 kV transmission networks in the states of Bahia and Sergipe, in northeastern Brazil, with a total investment of 1,200 million reais (nearly $250 million / 229 million euros). ).

The company won the contract by offering a lower price discount of 99.9 million riyals (about $20 million / €19 million) annually over a 30-year contract.

Cymi, which belongs to the French Vinci group, has been awarded plot 3, which includes the construction of 349 kilometers of transmission lines in the state of Minas Gerais, in the southeast of the country.

The company will make investments estimated at 921.4 million riyals (about $192 million / 176 million euros), and the state will receive about 70.9 million riyals (14.7 million dollars / 13.5 million euros) annually during the 30-year contract.

The winning companies also include the French and Brazilian Engie Group such as CTEEP and the Genesis Consortium, which were awarded two lots each, Furnas and Rialma.

Lowest price

The nine auction lots were awarded to the companies that bid the lowest price to provide the service.

According to the government, this is one of the largest auctions in the history of the electricity transmission sector, with an expected investment of approximately 16,000 million riyals ($3,300 million or 3,000 million euros).

Several lots are designed to provide an outlet for photovoltaic, wind and biomass power generation. Another aims to improve the reliability of service in the metropolitan area of ​​Recife, the capital of the state of Pernambuco (northeast).

Aneel plans to hold two more major transmission line auctions in November and March 2024.

Among the three tenders, it is expected to attract investments worth 60,000 riyals ($12,500 million) and to establish the necessary infrastructure to expand renewable energy projects that are being developed in different regions of the country.