The hotly contested auction of 2,600 km of transmission lines on Thursday (28 June) had all 20 lots on offer successfully granted to the private sector under concession. Responsible for the event, the National Electric Energy Agency (Aneel) forecasts the auctions will drive R$ 6 billion in investments and help create more than 13,000 jobs over the 30-year concession period.

Unlike other infrastructure auctions, energy transmission bids are won by the company or consortium that offers to make the lowest revenue to build and operate the lines from a ceiling set by the government, which results in lower rates charged to consumers. In this case, the average discount obtained in the dispute was 55.26%, the highest in the last 20 years.

The transmission facilities are expected to enter into commercial operation within 36 to 63 months from the signing of the respective concession agreements.

Indian company Sterlite Power Grid won six lots of the event, assuming responsibility to make total investments of R$ 3.6 billion. It won one the most sought-after lots, acquiring the right to build and operate 541 km of power lines between Ceará and Rio Grande do Norte, in the Brazilian Northeast, with a bid 58.54% lower than the ceiling set by Aneel.