THE electrobras made its first moves after completing its recent capitalization process. One of them was having won one of the lots offered in the largest energy transmission auction since 2019, which took place at the end of June.
The participation of the largest energy company in the country in competitions with greater competition, according to analysts, is expected, since the company was recently capitalized, and may be more competitive.
“The privatization brought more cash to Eletrobras, and this money allows it to have better competitiveness with other companies that had more presence in the market”, says Michael Viriato, finance professor at Insper and partner at Casa do Investidor.
The auction had a total of ten winning companies with the sale of 13 lots, with an initial investment projection of R$ 15.3 billion.
The new concessionaires will be responsible for the construction of the transmission lines, which should take between 42 and 60 months, and for the subsequent maintenance. Altogether, the lots represent 5,425 kilometers of transmission lines and 6,180 megavolt-amperes (MVA) in substations transformation capacity.
In the case of Eletrobras, the company won lot number eight, after a winning bid of R$ 12.25 million from subsidiary Eletronorte. As a result, it will need to build and manage two facilities in Rondônia.
In addition to the company, the other winners were: Consórcio Verde, Neoenergia, Isa Cteep, Zopone Engenharia, Sterlite, Engie, Taesa, Energisa and Consórcio Norte.
For Flávio Conde, head of equity at Levante, the completion of lot 8 by Eletrobras and the strong investment in energy generation and transmission in Brazil are positive aspects in the eyes of the market, which expects decisions with a view to greater control over administrative efficiency after privatization.
He pointed out that the investment in the North region is part of the company’s strategy, which is a leader in electricity transmission in Brazil, with 40% of the total transmission lines of the National Interconnected System in its basic network.
“Eletrobras’ generators are already well served, but there are new projects, mainly in the North region, which will need more lines for generation, so the company has entered the market. This is the product of the privatization of the company and we welcome it to return to investment in transmission lines”, added the specialist.
“Eletrobras can enter the market stronger and buy projects that are already underway, with the objective of helping the system to grow in a more sustainable and faster way”, he added.
The specialists reaffirmed the need for a solid performance by the company in this market, but stressed that the purchase of competitors would not lead to a monopoly in the energy transmission and generation sector.
“Brazil needs more investments. It is very difficult for the largest energy company in the country, as a state-owned company, to keep up with these investments. The infrastructure sector is highly capital intensive, and making large investments as a state-owned enterprise is not so simple. For energy protection in Brazil, it is necessary to have several private companies in this field”, highlighted Michael Virato.
“I don’t see the danger of monopoly because the transmission line market is a market that takes investment, cost and return into consideration. So if there is an abusive cost, Cade should act immediately. But I don’t see this as the policy of the new Eletrobras”, pointed out Flávio Conde.
Also according to Flávio Conde, with privatization, Eletrobras is expected to increase investments from around R$4 to R$5 billion per year to around R$10 to R$15 billion.
“This is a projection of total investments and, as positive as it is to invest in transmission lines, the company’s main focus is on energy generation”, he added.
Virgínia Parente, a professor at USP, makes a reservation about the June auction: “It is important for the company to embrace new and good projects, but the entire auction had a discount of around 40%, and when a discount is too large, know if it is, in fact, a good deal”, he says.
“It is positive for the company to return to the game, but it has to return with good profitability, and it remains to be seen whether the companies that win the lots will have this profitability with such a large discount”, he says.
the auction
The biggest power transmission auction since 2019 took place on Thursday, June 30, at B3’s headquarters in São Paulo.
The 13 lots traded were sold, with a discount reaching 59.90%.
The transmission lines will cover the states of Acre, Amapá, Amazonas, Bahia, Espírito Santo, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Pará, Rondônia, Santa Catarina, São Paulo and Sergipe.
In the first part, starting at 10 am, lots 1, 2, 3, 9, 10 and 11 were traded. As of 2 pm, lots 4, 5, 6, 7, 8, 12 and 13 were offered.
Bids had to respect a maximum Allowed Annual Revenue (RAP) amount, with the winner offering the lowest amount.
The first lot, which includes 13 facilities in the states of Minas Gerais and São Paulo, was purchased by Consórcio Verde, with a RAP of R$ 283.3 million and a discount of 47.34%.
The second lot, with six installations in Minas Gerais and São Paulo, was won by Neoenergia, with a bid of R$ 360 million and a discount of 50.33%.
Isa Cteep won lot 3, comprising nine facilities in Minas Gerais and Espírito Santo, with a RAP bid of R$285.73 million and a discount of 46.75%.
Lot number four, which provides for an installation in Amapá, was purchased by Zopone Engenharia, with a RAP of R$ 38.89 million and a discount of 5%.
Comprising three facilities in Bahia and Sergipe, lot five was sold for a bid of R$22 million and a discount of 26.52%, made by Sterlite.
Isa Cteep won the dispute for lot six with a bid of R$ 13.43 million and a discount of 59.21%. It has a facility in the state of São Paulo.
In another auction, the seventh lot, with an installation in Pará, was bought by Engie, which offered a RAP of R$ 6.48 million and a discount of 59.90%.
Lot number eight was won by Eletronorte, a subsidiary of Eletrobras, which made a bid of R$ 12.25 million and a discount of 38.57%. As a result, it will need to build two facilities in Rondônia.
The ninth lot was purchased by Sterlite, with an annual revenue of R$87.6 million and a discount of 32.96%. It has five facilities located in Mato Grosso and Pará.
Taesa won lot number ten, comprising two facilities in Santa Catarina, with a bid of R$18.78 million and a discount of 47.96%.
The eleventh lot was purchased by Neonergia, with a bid of R$ 38.2 million and a discount of 45.74%. It comprises four facilities in Mato Grosso do Sul.
The penultimate lot, number 12, has an installation in Amazonas and was purchased by Energisa, whose bid was R$ 17.68 million and a discount of 45.26%.
The last lot, comprising two facilities in Acre, had Consórcio Norte as the winner, with a bid of R$ 22.4 million and a discount of 31%.
*With information from João Pedro Malar, from CNN Brasil Business
Source: CNN Brasil
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