Engie won the primary concession involving a transmission line between the southern states of Paraná and Santa Catarina. The company secured this contract with a competitive bid, offering a 46.89% discount on the maximum regulated revenue. Cymi captured the first and fifth lots: the first involves a project spanning Rio de Janeiro, São Paulo, and Minas Gerais, with a 46.85% discount over maximum revenue, while the fifth covers crucial Amazonian regions in Mato Grosso and Pará, offering a 50.89% discount.
The projects together entail the construction and maintenance of roughly 800 kilometers of transmission lines and the installation of 2,150 megavolt-amperes (MVA) in substations and synchronous compensators. Deployment will span eleven of Brazil’s 27 states, including Bahia, Ceará, Minas Gerais, São Paulo, and Rio de Janeiro, with construction timelines ranging between 42 and 60 months.
The government expects these infrastructure expansions to generate over 8,000 direct and indirect jobs while enhancing grid stability amid growing electricity consumption. The fifth lot was awarded to the Brazil-based BR2 ET Transmissora consortium, comprising several Brazilian energy companies. The auction saw robust competition, resulting in average discounts above 50% against regulatory income caps, underscoring strong investor confidence in Brazil’s transmission sector.
This article was curated and published as part of our South American energy market coverage.
