Energy Transmission Line Auction to Receive Over 15 Billion Reais in Investments

Although There Are Billion-Dollar Investments in the Auction, The Power Transmission Lines Present Problems That May Cause Enormous Losses

Scheduled to take place on June 30 of this year and with total investments of R$ 15.293 billion, the next power transmission line auction is expected to construct 5,291 kilometers of new networks throughout Brazil. The expectation is that 31.4 thousand job vacancies will be available while the works are being carried out, over a period that may vary between 42 and 60 months.

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According to the website Broadcast, the power transmission lines will be deployed in the states of Acre, Amapá, Amazonas, Bahia, Espírito Santo, Mato Grosso and Mato Grosso do Sul, Minas Gerais, Pará, Rondônia, Santa Catarina, São Paulo, and Sergipe. According to the auction rules, the concessions, which had been divided into 13 lots, will have a 30-year term, which can be extended for the same amount of time.

The auction notice for billion-dollar investments is expected to be published by May 26, just over a month before the event. Contracts are to be signed on September 30.

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The power transmission lines present some limitations that constitute a recurring problem in the electrical sector. Just like the investments from the auction, this problem has caused the country, in recent years, billion-dollar losses, as countless wind farms and hydroelectric power plants were completed but failed to have means capable of evacuating the produced energy. Currently, this obstacle also affects new solar power plants or photovoltaic plants.

According to data provided by the Brazilian Solar Photovoltaic Energy Association (Absolar), in 2019, 33 thousand megawatt-hours (MWh) were not launched into the system due to a lack of power transmission lines. The following year, this figure rose to 70.8 thousand MWh; in 2021, until August, it reached 105 thousand MWh. In other words, investment losses have been happening more and more frequently.

In reality, the losses from the auction investments total around hundreds of millions of reais, in addition to the fact that there is less energy available for consumption. To avoid power outage cases, Brazil relies on other types of energy sources.

Today, the country has 145,600 km of available power transmission lines, according to information from the National Electric System Operator (ONS). By 2025, the expectation is that this transmission network will have the capacity to reach 184,054 km.

Check out a brief explanatory video from Aneel about how a power transmission auction works: Power Transmission Auctions of Electric Energy

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