EDP Brasil leads Transmission Auction with investments of R$3 billion
Four lots sold by the Company amount to around 1.2 thousand kilometers of lines in MG, SP, MA, SC and RS
EDP Brazil has purchased four lots of transmission lines in an auction held last Monday (the 24th) by the National Agency of Electrical Energy (Aneel), becoming the top winner by investment volume. Altogether, the Company expects to invest about R$3 billion in the work, which will add about 1,200 kilometers of transmission networks to the national electricity system, in the states of Minas Gerais, S‹o Paulo, Santa Catarina, Rio Grande do Sul and Maranh‹o.
In the northeast, the Company will be responsible for expanding the energy supply in the metropolitan area of S‹o Lu’s and in the vicinity of the border with Piau’. 324 kilometers of lines will be built in the region, in addition to two substations. The residents of the Southeast will benefit from a new 375-kilometer system, which EDP will implement with the objective of connecting the cities of Estreito (MG) and Cachoeira Paulista (SP), reinforcing a secure supply in the area.
The Company will also expand the structure of electric energy transmission in southern Santa Catarina, integrating more than 485 kilometers of network, in addition to a substation in the region. "The result of the auction was extremely positive in the sense of expanding our presence in transmission and to intensify our strategy of diversifying participation in the electricity sector with adequate profitability and controlled risk," says Miguel Setas, CEO of EDP Brasil.
The efficient management process adopted by the company and the favorable conditions with partners in the business will allow a reduction in the total cost of the work. That way, the value of investments estimated by the Company is almost 17% lower than that calculated by the regulator. In practice, this means that EDP will be able to deliver the assets with greater efficiency and in a shorter term than originally planned in the concession process.
The rigorous selection criteria, the mitigation of risks with providers, the realistic schedules adopted and the control of the leveraged investments will allow the company to deliver a return to its shareholders ranging from 12% to 14%. "We were very selective in the regions where we want to operate, we carried out a rigorous evaluation of all the main risks and we assure guarantees and important measures of compliance with all partners, " explains Miguel Setas.
Specifically in the auctioned lot in Santa Catarina, the formation of a consortium with Celesc was strategic, since it allowed access to differentiated competitive conditions.
Efficient history
In 2016, EDP had already finished a lot of 113 kilometers of transmission lines and a 150 MVA substation in Esp’rito Santo. The total estimated investment for the project was R$116 million. The work is currently in the licensing phase, expected to start operating in 2019.
The management model adopted for the construction of transmission lines will be the same used by EDP in its generation work, which helped the company anticipate power plants, known in the industry as PMBOK. With the help of this methodology, the UHE Cachoeira Caldeir‹o, for example, was delivered by the Company eight months ahead of regulatory schedule, while the Santo Ant™nio do Jari hydroelectric plant was ready five months in advance.
