Engie Brasil Warns About Possible Decline in Competitiveness of Transmission Auction Due to Interest Rates and Acquisition

Written by Bruno Teles

Published on 28/06/2023 at 21:46

Updated on 28/06/2023 at 21:48

Foto: Engie Brasil

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Engie Brasil Is All Set to Participate in the Transmission Auction Happening Next Friday, June 30. It Is Expected That the Competition Might Occur at a Level Below Previous Bids.

After participating in a panel discussion at a CEBRI event on Wednesday, June 28, in Rio de Janeiro, the president of Engie Brasil Energia, Eduardo Sattamini, said: “A high level of competition is expected, maybe lower than previous auctions due to some specificities with interest rates, investments made by some players, and the size of the lots. It won’t be easy, but we will do our best”.

However, regarding the other auction indicated by the Ministry of Mines and Energy for 2024, set at R$20 billion, the executive commented that this decision was correct, stating that he has been discussing with governments for a few years that in order to have a sustainable industry in transmission, it is necessary to distribute investments over time.

In this way, another auction is already scheduled to take place in October 2023. President Eduardo expressed confidence in the realization of the auction and also in the capacity by the end of the year to provide greater security to the system, especially amid a scenario of oversupply of intermittent renewables. Furthermore, he is working on creating value for hydropower plants that currently face significant challenges due to market structure and the lack of valuation of their attributes.

ARTICLE CONTINUES BELOW

Engie Brasil: The Subsidies

The subsidies in the sector permeated a significant part of the last panel of the first day of the event. Eduardo from Engie Brasil expressed opposition to the existence of more incentives of this type unless they are very well structured and have an end date. However, this is different from most of the lobbies seen in the National Congress.

Thus, for the executive, when new technologies are introduced, regulatory agility is required to correct the inefficiencies brought to the system, especially if the subsidy is prolonged and granted to certain sources. It is also important to remember that another point that cannot be overlooked, according to Eduardo, is the need to enhance the value of hydropower plants for pricing offers.

Moreover, the executive highlighted that it is also necessary to consider the commercial capacity of reduced plants and compensate for the extension of concessions. Thus, reformulating ways for the sector not to have GSF below the current 85%, unless due to hydrological issues.

Engie Brasil Warns About Possible Decline in Competitiveness of Transmission Auction Due to Interest Rates and Acquisition

Engie Brasil Is All Set to Participate in the Transmission Auction Happening Next Friday, June 30. It Is Expected That the Competition Might Occur at a Level Below Previous Bids.

Engie Brasil: The Subsidies

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Engie Brasil Warns About Possible Decline in Competitiveness of Transmission Auction Due to Interest Rates and Acquisition

Engie Brasil Is All Set to Participate in the Transmission Auction Happening Next Friday, June 30. It Is Expected That the Competition Might Occur at a Level Below Previous Bids.

Engie Brasil: The Subsidies

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

She started by collecting oyster shells from restaurants and today she has already accumulated more than 10 tons to restore reefs, recover coastal habitats, and demonstrate how a common waste can become a tool for ocean conservation.

Philippines begin construction of the country’s largest desalination plant in a city without enough fresh water to grow, and the 66,500 m³ per day plant will transform the sea into drinking water for 50,000 homes in 24 months with reverse osmosis technology from SUEZ and JEMCO.

Turkey is building a billion-dollar shortcut to channel billions of dollars by sea with a 45 km long canal, 275 meters wide and 20.75 meters deep, which promises to relieve the Bosphorus amid the crisis in the Strait of Hormuz.

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