ANEEL Transmission Auction n. 02/2019:
ANEEL approved the opening of a public hearing (Public Hearing n. 23/2019) for analysis and contribution to Bidding Notice n. 02/2019, regarding the contracting of a public electricity transmission service. The contribution period started on May 30, 2019 and ended on July 1, 2019.
The auction will be divided into 13 lots (lots 10 and 11 coming from expired concessions of Chesf and Eletronorte, respectively) with an expectation R$ 4 billion of investments. 2,380 km of transmission lines will be auctioned with 7,900 MVA of transformation.
The Bidding Notice is expected to be published on November 14, 2019 and the public session of the auction will take place on December 19, 2019.
Among the innovations proposed in the Bidding Notice n. 02/2019, we highlight the following points:
- Change in the processing for publication of the Auction’s Bidding Notice: Now, after the end of the Public Hearing, ANEEL will make the Bidding Notice available for appreciation by the Brazilian Federal Court of Audit (TCU) more than 120 (one hundred twenty) days prior to the date of the public auction session.
- Reduction of the time frame for entering into the CCI: The period was reduced from (12) twelve to (6) six months, counted from the signing of the concession contract.
- CUST: Prior formalization of the Transmission System Usage Contract (CUST) with distributors by July 2019.
- Noncompliance and guarantees: Changes in the form of execution of the Guarantees of Faithful Compliance (GFC) and application of penalties due to non-compliance with the agreed-upon deadlines. ANEEL may trigger the GFC in case of non-payment of the fine.
- New contractual clauses: Inclusion of contractual anticipation clauses, evidencing that the anticipation of commercial start-up is related to the business risk; and inclusion of a clause in the concession contracts to show that the amortization/depreciation of the investments, originally planned for the project, will occur within the concession period.
Further information can be accessed through ANEEL’s official website.
ANEEL Transmission Auction n. 04/2018:
On December 20, 2018, ANEEL promoted the Transmission Auction n. 04/2018, with the purpose of negotiating 16 lots from projects located in the States of Amazonas, Amapá, Bahia, Espírito Santo, Minas Gerais, Pará, Paraná, Rio de Janeiro, Rio Grande do Sul, Rondônia, Santa Catarina, São Paulo, and Tocantins.
This Auction offered 7,152 km of Transmission Lines and Substations that add 14,819 MVA in substation capacity to the system. The maximum RAP was R$ 2.139 billion (accounting for 67.77% of equity and 32.23% of third-party capital) and the term for commercial start of the projects varied from 48 to 60 months.
Some of the projects included in lots 10, 11, 12 and 13 were related to facilities granted to Laranjal Transmissora de Energia S.A. and Eletrosul Centrais Elétricas S.A., whose concessions were terminated due to expiration (according to ANEEL Decrees n. 2,194/2018 and n. 2,421/2018 and MME Ordinance n. 466/2018). For these lots, the term for commercial start was reduced from 60 to 48 months, since such projects have already advanced on their implementation schedules (project, environmental licensing, etc.).
In addition to the novelty of relicitation of expired projects, Transmission Auction n. 04/2018 also innovated in some aspects:
- Anticipation of the commercial start-up date: The transmission company has the prerogative to anticipate the date of commercial operation, without the need for ANEEL’s request, in cases where the new date is equal to or greater than the date of systemic need. For the hypotheses of the new date to be prior to the date of need, the requirement of the Agency was maintained for that purpose. In the case of installations that depend on other transmission companies, the new date of commercial start must be made compatible with the start date of the facilities of the accessing transmission and formalized through a CCI contract.
- Participation in the Auction: The participation in Auction n. 04/2018 was allowed through direct participation of the existing SPE (previously established), and proof of its shareholders’ equity can be verified through its direct controlling shareholders. The possibility of setting up a new SPE to manage the concession remained.
- Auction Costs: The winners of lots from Auction n. 04/2018 are now obliged to pay a single amount to the Stock Exchange (current B3 S.A.), related to the fees to hold the event and the costs of managing the Guarantees of Faithful Fulfillment.
- Qualification for the Special Regime of Incentives for Infrastructure Development-REIDI and as Priority Project: Auction n. 04/2018 started to allow the presentation of the application forms for qualifying to REIDI and as a priority project concomitantly with the delivery of the documentation at the concession agreement signing.
- Economic and Financial Statement: Auction n. 04/2018 started to consider the real economic capacity of the projects. For this, the winning bidder should discount the amounts spent on lots won in the previous auction (Auction n. 02/2018) when presenting the economic-financial authorization. This new rule limited the participation of companies in the event, as the resources committed in the Auction n. 02/2018, by the winners of the offered lots, should now be included in the calculations of the Shareholders’ Equity for the event 04/2018.
TAESA won Lot 12 of Transmission Auction n. 04/2018, offering a RAP of R$ 58.956 million to build and operate the concession (a discount of 38.8%). This lot, arising from the expiration process related to the project acquired by Eletrobras in 2014, is composed of four transmission lines, as well as other smaller sections, totaling 587 kilometers of extension, and two substations, to be built in the State of Rio Grande do Sul. The project is linked to the integration of the wind power potential of the State of Rio Grande do Sul, especially in the region of Coxinha de Santana, and will be implemented within 48 months.
ANEEL Transmission Auction n. 02/2018:
ANEEL promoted, on June 28, 2018, Transmission Auction n. 02/2018 referring to 20 lots of projects contemplated in 2,560 km of transmission lines and substations with a transformation capacity of 12,230 MVA.
The event aimed at the construction, operation and maintenance of 44 projects, being 21 transmission lines and 23 substations, located in 16 States (Alagoas, Bahia, Ceará, Goiás, Maranhão, Minas Gerais, Pará, Paraíba, Piauí, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, Santa Catarina, São Paulo, Sergipe, and Tocantins).
According to the descriptions contemplated in the Bidding Notice and in the Concession Agreement, the commercial start-up period of the projects was estimated at 36 to 63 months, considering concessions of 30 years, counted from the conclusion of the concession agreements.
The total value of the maximum RAP considered for the payment of the transmission companies was approximately R$ 1.0 billion. The new facilities of the SIN reached investments to the order of R$ 6.0 billion, with expectations of generating 13,600 direct jobs.
The Columbia Consortium, made up of TAESA and Companhia de Transmissão de Energia Elétrica Paulista – ISA Cteep, was the winner of Lot 1 of the Auction, located in Santa Catarina, related to the operation of the Transmission Line LT 230kV Biguaçu – Ratones – C1 and C2 , with 28.6 km each (aerial, underwater and underground sections), as well as the Substation SE 230/138kV Ratones – 2 x 150 MVA. The RAP winning bid was R$ 38,231,291.00.
However, prior to the auction day, TAESA exercised its right of withdrawal from the Columbia Consortium for the operation of Lot 1. Therefore, ISA Cteep had fully assumed the entire concession.