ENGIE was the successful bidder in the concession auction organized by the Brazilian Electric Energy Agency (Aneel) on June 30, which took place at the São Paulo Stock Exchange – B3.
Aneel procured nine different lots through a reverse-auction mechanism, in which the successful proponent provides the lowest Annual Permitted Revenue (RAP). Engie won in Lot 5 with a final RAP of R$ 249.3 million, and the concession period is 30 years.
This lot covers three different states: Bahia, Minas Gerais, and EspÃrito Santo. As the winner, Engie will be responsible for the engineering, construction, operation and maintenance of 1,006 kilometres of electricity transmission lines, with an estimated investment of R$ 2.66 Billion (circa USD 555M).
These transmission lines will facilitate the transfer of renewable energy from the Northeast Region to the Southeast region, meeting the growing energy demands.
“This success is an important step in the development of ENGIE’s electric power transmission activities. It also reinforces our position in Brazil, a key country for the Group for over 25 years. While contributing to the security of supply and resilience of the country’s energy system, this project will also enable better integration of renewable energies, thereby helping to accelerate the energy transition”
Cécile Prévieu, ENGIE Executive Vice President in charge of Networks activities.
Source: Engie
