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Brazil offers 15 power transmission projects for auction this 5th

This Thursday, the federal government is holding its first auction of power transmission projects of the year, offering 15 lots expected to have a total investment of around 18.2 billion reais.

Together, the projects involve the construction of 6,465 kilometers of new lines and substations with a transformation capacity of 9,200 megavolt-ampere (MVA), and are distributed in 14 states: Alagoas, Bahia, Ceará, Mato Grosso do Sul, Maranhão, Minas Gerais, Paraíba, Pernambuco, Piauí, Rio de Janeiro, Rio Grande do Norte, Santa Catarina, Sao Paulo and Tocantins.

The event concludes a sequence of three major tenders launched since last year with the aim of strengthening the capacity to circulate renewable energy generated mainly in the North-East region to load centers in the South-East and of the South. This is the second largest transmission auction ever seen in terms of the volume of investments made by Brazil, second only to that of December last year, when the tender for the construction of a direct current dual pole was announced.

The contracted projects have installation times ranging from 36 to 72 months from signature of the contracts, and are expected to enter into operation between June 2027 and June 2030.

Of the 15 lots up for grabs this Thursday, six involve investments of over 1 billion reais. Furthermore, some lots include a conditional offer: offers for lot 12 will only be made if lot 1 is sold, while for lots 14 and 15 offers will only be made if there are valid offers for lot 6.

The expectation is for an event with a strong presence of large companies in the electricity sector, such as Engie, CPFL, Eletrobras and Alupar. But some companies have already said they will not participate, such as transmission companies Taesa and ISA Cteep and state companies Cemig and Copel.

Source: Terra

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