Brazilian government plans transmission auction to expand electrical capacity in 10 states

RIO DE JANEIRO, BRAZIL – The federal government on Monday, January 3, announced the auction of transmission works with capacity to expand electric power in 10 states, scheduled for June 2022.

A total of 4,810 km of transmission lines will be auctioned, with 6,030 MVA of installed power and some R$8 (US$1.4) billion in investments, according to a note from the Ministry of Mines and Energy (MME).

The bulk of the area is located in the northern region of Minas Gerais, with 3,543 km of transmission lines and 3,750 MVA in transformer capacity at substations. The investment in the expansion of the region’s electrical capacity will amount to some R$6 billion.

Transmission projects whose concession contracts are in the forfeiture process may also take part in the auction.

The penalty for forfeiture occurs when there is a breach of contractual obligations by the concessionaire, which may lead to the termination of concession contracts.

These enterprises, with 942 km of transmission lines and a power output of 1,030 MVA, are located in the states of Amazonas, Pará, Rondônia, Mato Grosso do Sul, and Santa Catarina.

The government estimates more than R$1.2 billion in investments in these areas.

“One of the auction highlights is the work to increase the energy security of the state of Amapá. Investments of R$200 million are planned for the construction of 250 km of transmission lines,” the MME said in a statement.

In addition to the works cited above, expansion and reinforcement works in electric energy service in the states of São Paulo, Pará, Sergipe, and Acre will complete the auction scope. These represent an additional 1,250 MVA of power at substations.

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