ENGIE makes successful bid for lot 5 at the Brazilian Transmission Auction
ENGIE was one of the winners in the concession auction held by the Brazilian Electric Energy Agency (Aneel) on Friday, June 30 at the São Paulo Stock Exchange – B3. The winning bid offered a final Annual Permitted Revenue (RAP) of R$ 249.3 million. The contract covers the engineering, construction, operation and maintenance of 1,006 kilometers of electricity transmission lines in the States of Bahia, Minas Gerais and Espírito Santo, meeting the demand for the flow of energy generated by renewable sources in the Northeast Region to the Southeast region.
“This achievement aligns with ENGIE’s position as an energy infrastructure investment platform, strengthening our strategy of balanced management and diversification of the assets portfolio. Responsibly accelerating this agenda is our highest priority and we continue to invest in our teams and in the quality of our work. A meticulous process ensured good commercial terms combined with our high capacity to deliver projects with quality and safety, and to act diligently to meet our commitments with deadlines and financial returns”, observes Eduardo Sattamini, Chief Executive and Investor Relations Officer of ENGIE Brasil Energia.
“Investment in transmission lines is strategic for the ENGIE Group in Brazil and aligns with the company’s global purpose of leading the energy transition. The sector contributes directly to de-carbonizing the economy by enabling better outflow of renewable energy, connecting generation hubs and consumer centers. The outcome of the auction makes this business line even more material for ENGIE domestically” comments Maurício Bähr, Chairman of the Board of Directors of ENGIE Brasil Energia.
About the Lot 5
Among the largest in this bidding round, lot 5 involves the states of Bahia, Espírito Santo and Minas Gerais with an expected investment up to BRL 2.66 billion and completion period of 66 months according to the Electric Energy Agency.
The duration of the concession of the public transmission service will be 30 years, as from contract signature date, scheduled for Sep/29/2023.
Company activities in the segment
In the Transmission segment, ENGIE has the Gralha Azul system with a total of 900 kilometers of line in the state of Paraná, and the Novo Estado project, with a further 1,800 kilometers in the states of Pará and Tocantins, both concluded in February, ahead of the schedule established by Aneel. Still in the process of implementation is the Gavião Real Project, for which the Company made a successful bid in Aneel’s first auction in 2022. The project consists of the expansion of the Itacaiúnas Substation to meet the needs of the energy distribution network in that state Pará and will be incorporated into Novo Estado.
ABOUT ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 97,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose (“raison d’être”), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2022: 82.6 billion Euros.
In Brazil, ENGIE, leader in 100% renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. The Company
has in the country an installed capacity of 12,5 GW, originated from renewable sources and with low GHG emissions, such as hydro, solar and biomass power plants, and windfarms.
With the acquisition of Transportadora Associada de Gás – TAG, ENGIE now also owns the largest natural gas transportation network in the country, at 4,500 km and transecting 10 states and 191 cities.
The Group has a complete portfolio of integrated solutions focused on reducing costs and improving the infrastructure for companies and cities, such as energy efficiency, public lighting, energy monitoring and management.
With 2,800 employees, ENGIE’s turnover in Brazil in 2023 was of R$ 11.7 billion. ENGIE trades on the B3 through its energy generation and trading company, ENGIE Brasil Energia, under the ticker EGIE3. In addition to being a B3 Novo Mercado component, the Company is one of the very few companies that have been listed in the Business Sustainability Index since its creation in 2005. In 2021, ENGIE Brasil Energia was included in the Carbon-Efficient Index (ICO2), made up of IBrX 100 companies that are most transparent in terms of GHG emissions reporting and how they are preparing for a low-carbon economy.
The company also received in May 2024 the certification Great Place to Work, a recognition which validates the continuous commitment of the company to create a positive and inclusive work environment for all.
The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris – Europe 120/France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).