ONS estimates investments of BRL 60.7 billion in power transmission works by 2027

ONS estimates investments of BRL 60.7 billion in power transmission works by 2027

The expansion of the Brazilian electricity system is expected to require investments of 60.7 billion in energy transmission works over the horizon from 2023 to 2027, according to estimates by the electricity operator ONS published on Monday.

Of this total, 55.7 billion refer to new works, which are necessary in view of the strong growth in wind and solar photovoltaic production, especially in the Northeast and in Minas Gerais, which require the disposal of energy surpluses towards the other subsystems of the Interconnected National Network System (SIN ).

The works indicated in the Medium Term Electrical Management Plan envisage the construction of approximately 16,000 km of new transmission lines and 34,000 megavolt-amperes (MVA) of additional transformation capacity in new and existing substations.

These commitments represent an increase of approximately 10% in the length of the transmission lines and 9% of the nominal power installed in the transformers of the Basic Network and the Basic Border Grid, compared to the existing grid.

In the regional analysis, the ONS highlighted that five states concentrate around 80% of future investments: Bahia (13.6 billion reais), Minas Gerais (13.1 billion), Maranhão (10.3 billion), Goiás (8.5 billion) and Piauí (4 billion).

Also in the medium-term plan, the ONS has estimated that the electricity load in the SIN will reach 111 GW in 2027, an 18% increase compared to the 94.1 GW recorded in 2022. 208.4 GW at the end of 2026, compared to the ‘current 186 GW.

The body also highlighted the need to resolve a bottleneck created by the “boom” of wind and solar projects after the enactment, in 2021, of a law that ended subsidies for renewable sources. According to the ONS, the sheer volume of generation projects requiring connection to the transmission system has made the current criteria no longer adequate.

In consideration of this, the ONS has proposed a “paradigm shift” which favors economic logics, with the creation, for example, of an auction to select the most promising and concretely feasible projects.

The proposal is in line with the plan of the Ministry of Mines and Energy under the administration of Jair Bolsoanro, which in 2022 laid the groundwork for a new tender to this end, scheduling the first auctions for 2023.

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Source: Terra

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