Last Week Was Quite Pleasant for Energy Company ENGIE, as the Company Won Lot 7 in the Renewable Energy Transmission Auction Held by Aneel, Surpassing Other Participating Companies.
Last Thursday, (06/30), the most recent renewable energy transmission auction took place, organized by the National Electric Energy Agency (Aneel), which secured the victory of Lot 7 for the electric sector company ENGIE.
Understand How the Auction Works and the Investments Assigned to the Available Lots
With the recently auctioned lots, the winning companies must build and maintain about 5,000 kilometers of lines, distributed across 13 Brazilian states. The 13 lots represent 6,180 mega-volt-amperes, and the projected investment is R$ 15.3 billion.
Furthermore, the winning companies will need to complete the works within 42 to 60 months from the signing of the contracts, according to Aneel. The process for selecting the winners was based on the lowest RAP proposal to be paid by the defined project.
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In other words, the RAP is the revenue that entrepreneurs and companies will be entitled to for the provision of energy transmission starting from their entry into commercial operations of the facilities.
The majority of the planned investments are concentrated in the three first lots, the most contested of the day, and the significant competition was a reason for celebration for Aneel. Thus, of the initial R$ 15 billion, about R$ 12 billion will be allocated to long-distance transmission, managing to transport renewable photovoltaic energy.
Electricity Company ENGIE Wins Lot 7 of the Renewable Energy Transmission Auction
The energy transmission auction featured intense competition among the main electricity companies in the country, including EDP, Cemig, Neoenergia, Energisa Isa Cteep, Equatorial, Alupar, Cymi, CPFL, Engie, Sterlite, Taesa, Cobra Brasil, Zopone Engenharia, Eletronorte, and Eletrosul, from Eletrobras.
In this context, the ENGIE Transmission Consortium secured Lot number 7, with an offered RAP value of R$ 6.5 million and a discount of 59.9% compared to the initial value set by the agency. The ENGIE Transmission Consortium surpassed bids from companies such as Taesa at R$ 6.8 million and Consortium Olympus XII, at R$ 11.5 million, and Eletronorte, at R$ 9.365 million.
The lot acquired by the company consists of the expansion of the Itacaiúnas substation, with the construction of a new yard and the addition of 450 mega-volt-amperes (MVA) of power capacity. Furthermore, the new project, located in Marabá (PA), will be important for meeting the load growth in the southeastern region of Brazil.
The ENGIE Consortium also reported that it expects to achieve a reduction of more than 20% in capex, and a timeline advancement of about 18 months on the completed project. The company also emphasized in a statement that the conclusion of the auction follows a rigorous strategy of diversification and sustainable growth.
Learn More About the ENGIE Transmission Company
The ENGIE Transmission Consortium is the largest private energy company in Brazil, involved in the generation, commercialization, and transmission of electric energy, in addition to gas transportation and energy solutions. The company also has 97% of its capacity sourced from exclusively renewable sources and with low emissions of gases.
ENGIE also holds the most extensive natural gas transportation network in Brazil, spanning 10 states and 191 municipalities with a length of 4,500 km, completed in 2020 alone.

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