Brazil's Government to Hold Power Transmission Auctions Worth $4.7 Billion

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)

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Summary

Brazil expects to attract US$4.7 billion worth of investments to construct close to 4,500 km of transmission lines.

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First Auction Planned for March

Brazilian Minister of Mines and Energy Alexandre Silveira said Brazil will hold auctions for two energy transmission line in 2026, one for each half of the year, with planned investments of more than 25 billion reais (US$4.7 billion) and close to 4,500 kilometers (km) of line.

The first auction will be scheduled for March and is expected to attract investments of 5.7 billion reais (US$1.09 billion) for the construction of 888 km across 12 Brazilian states.

The second auction, expected in the second half of 2026, will include more than 20 billion reais (US$3.74 billion) in investments for the construction of another 3,500 km.

The government expects the auctions to attract national and international interest in expanding Brazil's power system.

"This is proof that Brazil has once again become fertile and safe ground for international ventures, a demonstration of confidence in our country," Silveira said. "These investments mean that there will be no shortage of electricity and that the economy will continue to run at full steam."

Novo Pac

As part of Brazil's Novo Pac plan, the government of Luiz Inacio Lula da Silva expects to boost transmission lines from 171,000 km in 2022 to almost 200,000 km after completing all scheduled projects. Total investments are projected at 89.4 billion reais (US$16.7 billion), with 33.6% of investments planned for 2023-26 and the remainder forecasted for beyond 2026.

As of August, 41 transmission projects had been completed, amounting to 4,216 km and 11,993 megavolt-amperes (MVAs) in additional capacity. Another 47 projects, scheduled for completion by the end of next year, are in execution and will add 11,778 km and 12,360 MVAs.

Overall, Novo Pac plans to complete 85 ongoing projects by 2026 and commence 77 new transmission lines beyond that period.

Industrial Info is tracking more than 388 transmission and distribution projects across Brazil worth US$12.12 billion.

Investments in Transmission Lines

The minister's remarks occurred during the acquisition by the Chinese State Grid of Brookfield's Mantiqueira concession, which includes 13 transmission lines totaling 1,300 km across 54 municipalities in Minas Gerais. The concession was signed in 2022 and extends through 2046.

Key Takeaways

• Brazil to auction close to 4,500 km of new transmission lines worth US$4.7 billion.
• The auctions will take place in March and the second half of the year.
• By the end of 2026, the government expects to complete 16,000 km of new transmission lines.

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).