Saturday, October 4, 2008

Electric Power - Brazil - Eletrobrбs subsidiaries dominate transmission line auction

Subsidiaries of Brazilian federal energy holding group Eletrobrás dominated power regulator Aneel's transmission line auction on Friday, snapping up two lines and six substations between them.


In total, rights to build, operate and maintain 356km of six transmission lines and seven substations throughout six states for 30 years were offered.

Investment in the lines and substations is expected to reach 500mn reais (US$249mn), Aneel said.

ELETRONORTE

Federal power company Eletronorte won the right to build and operate the 230kV, 95km-Ribeiro Gonçalves-Balsas transmission line and three 500/230/69kV Ribeiro Gonçalves, Balsas and Miranda II substations in Maranhão and Piauí states.

Eletronorte offered 6.03mn reais in annual revenue for the transmission line and the Ribeiro Gonçalves and Balsas substations, 30% below the 8.61mn-real starting price.

The company also offered to receive revenue of 6.28mn reais a year for the Miranda II substation, 20% below the 7.86mn-real starting price. The projects are expected to start operations in 18-22 months.

"We already have a big infrastructure in the region. That's why we were able to offer a lower price," company president Jorge Nassar Palmeira told journalists.

The lines and substations will strength power supply in Maranhão, Piauí and Tocantins states and will contribute to the region's development.

FURNAS

Another Eletrobrás subsidiary, federal energy company Furnas, presented the winning bid for the 500kV, 180km-Bom Despacho 3-Ouro Preto 2 transmission line in Minas Gerais state.

The group submitted the lowest bid, worth 6.83mn reais in annual revenue, 39% below the 11.15mn-real initial price. The line is due to be built within 21 months and its aim is to improve power supply in the region.

ELETROSUL, CHESF

Federal power company Eletrosul submitted the lowest bid to build and operate the 230/69kV Missões substation in Rio Grande do Sul state with an offer of 3.23mn reais, just 0.6% below the 3.25mn-real starting price.

"We plan to invest 30mn reais in the substation," Eletrosul engineering director Ronaldo Custódio said.

Eletrosul sister energy company Chesf won the auction to build and operate the 500/230/69kV Suape II and Suape III substations in Pernambuco state. The company agreed to take 8.54mn reais a year for the project, 43% below the 15.0mn-real initial price.

"This block was our main goal. It was a major deal for Chesf," company president Dilton da Conti Oliveira told reporters.

All three substations are expected to start commercial operations in 16-22 months and will improve Suape's port infrastructure and allow for a connection with the 77MW Passo São João hydro plant.

NEOENERGIA

Brazilian power holding company Neoenergia was awarded the 230/69kV Narandiba substation in Bahia state. The company accepted annual revenue of 4.15mn reais for the project, 60% below the 10.4mn-real starting price.

It was the biggest discount price in the history of Aneel's transmission line auctions. The project, scheduled to be ready in 24 months, will boost the reliability of power supplies to the city of Salvador.

NO OFFER

Only one block had no bids. No group presented offers to build and operate the 230kV Porto Alegre 9-Porto Alegre 4, Porto Alegre 9-Porto Alegre 8, Nova Santa Rita-Porto Alegre 9 and Monte Claro-Garibaldi transmission lines totaling 81km in Rio Grande do Sul. It was the first time since 2001 that one block was not auctioned.

"The budget for this block was too low and it didn't made sense," Custódio said. "The entire cost of the underground cable to build the line was already the entire budget for the whole enterprise. It was an unusual line."

Aneel will likely reevaluate the project and will offer the transmission lines again in the next auction, according to Eletrosul.



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