EDP acquires Transmission Lot 18 in the secondary market
The operation will have a total investment of R$ 88.5 million and will expand the Company's portfolio in the segment to 1,554 kilometers
EDP, a company that operates throughout the electricity sector's value chain, signed a contract to acquire, in the secondary market, Mata Grande Transmissora de Energia LTDA, from the IG group, and thus the concession contract for Lot 18, located in Maranhão and won at the ANEEL Transmission Auction No. 002/2018, held in April 2018. The Company's investment will be R$88.5 million, an amount that includes all construction costs. With this operation, EDP Brasil now has seven lots, totaling 1,554 kilometers of transmission lines in its portfolio.
Lot 18 consists of a 113-kilometer transmission line at 230 kV, will cut through nine municipalities and will connect with the Imperatriz and Porto Branco substations, with the mission of strengthening the energy supply in Maranhão. The development is already licensed and ready for construction. During the works, approximately 140 workers are expected to be employed. EDP intends to take advantage of the workers in the project who were mobilized at the Company's other construction sites, during the construction of Lots 11 and 7, also in Maranhão.
The schedule of the National Agency of Electrical Energy (ANEEL) determines the completion of the project in September 2022, but the Company has its expertise in the management of large projects and delivery within the planned cost, to anticipate the entry into operation of Lot 18, as occurred in Lots 24, in Espírito Santo, and 11, in Maranhão.
"The transaction reinforces EDP's strategic positioning of continuing to seek growth opportunities in the Transmission segment with adequate profitability. This is a "ready to build" project, with environmental licensing and other authorizations already obtained and synergies with two other projects we are developing in Maranhão, which allows us to add knowledge acquired in the early delivery of large projects in the electricity sector, not only in the transmission segment”, says Carlos Andrade, Vice President of Strategy and New Business at EDP in Brazil.
Transmission Investments
EDP has already invested R$3.3 billion in Transmission works and projects, representing 80% of total CAPEX execution. It will be R$ 4.1 billion by the end of 2021 for the construction of more than 1.5 thousand kilometers of lines and six substations in the states of Santa Catarina, Rio Grande do Sul, São Paulo, Minas Gerais, Maranhão and Espírito Santo.
In August 2020, the company concluded, 12 months in advance, the construction of the 230 KV transmission line (LT) – SE Miranda II/SE Chapadinha II, which is part of Lot 11 of the Aneel Auction No. 005/2016 . Lot 11 is composed of two transmission lines totaling 203 kilometers in length. The first stretch, the 230 KV TL - SE Coelho Neto/SE Chapadinha II, with 74 kilometers in length, was already in commercial operation since January 2020, with 19 months in advance.
Also in Maranhão, EDP is also responsible for implementing another Transmission project, Lot 7 of the Aneel Auction No. 005/2016, which received an installation license in July 2019. Sold in 2016, lot 7 consists of 127 kilometers of lines and a new power substation in São Luís (SE São Luís IV). In this case, the project aims to increase the supply of electricity in the north of the state, especially in the metropolitan region of São Luís.
In October 2019, EDP Transmission Aliança SC, a company formed by EDP Brasil and Celesc, received from the Santa Catarina Environmental Institute (IMA) the Installation License (IL) to start the last stage of the Lot 21 construction work, between the municipalities of Abdon Batista, Campos Novos and Siderópolis and Forquilhinha. Budgeted at R$ 1.2 billion reais, the venture includes 433 kilometers of transmission lines, the Siderópolis II substation and 991 towers along the route. In the same month, EDP had already received, through its subsidiary EDP Transmission SP-MG, the Installation License for the construction of Lot 18, which includes 375 kilometers of lines and two substations that cross 29 municipalities between the states of São Paulo and Minas Gerais. With an investment of R$ 1.3 billion, the construction of lot 18 should generate 3,500 jobs at the peak of its works.
At the end of 2018, EDP completed the construction of lot 24, in Espírito Santo, 20 months in advance. The project comprises 113 kilometers of line between the municipalities of Linhares and São Mateus, in the north of Espírito Santo, in addition to the São Mateus II substation. The total investment for the implementation of assets was R$ 116 million.
About EDP in Brazil
With over 20 years of experience, EDP is one of the largest private companies in the electricity sector operating throughout the value chain. The Company, which has more than 10,000 direct and outsourced employees, has six hydroelectric and one thermoelectric generation units, in addition to operating in Transmission, Commercialization and Energy Services. In Distribution, it serves about 3.5 million customers in São Paulo and Espírito Santo, in addition to being the main shareholder of Celesc, in Santa Catarina. In 2020, it was elected the most innovative company in the electricity sector by the Valor Inovação ranking, of the Valor Econômico newspaper, and is a reference in Governance and Sustainability, having been on the B3 Corporate Sustainability Index (ISE) for 15 consecutive years.