ENGIE is expanding its power transmission activities in Brazil with the award of new concessions

ENGIE won 2 lot in the auction held by ANEEL (the Brazilian Electricity Regulatory Agency) on Friday, March 27th. The successful bids proposed a final Annual Allowed Revenue of R$ 122,7 million. The awarded 30-year concession entails the construction, operation, and maintenance of 143 kilometers of power transmission lines connecting the states of Paraná and Santa Catarina in the South, and 5 synchronous condenser units in the states of Ceara and Rio Grande do Nortes in the North East. These new projects are located close to the Group’s existing transmissions lines and renewable assets in operation, and underscore Brazil’s strategic importance to ENGIE, which operates a total installed capacity of 16.5 GW, 100% renewable, including hydroelectric, onshore wind, and solar assets.    

With this successful auction, ENGIE will diversify its portfolio of power transmission assets with the synchronous condensers. Their role is to generate reactive power for the electrical grid stabilization, being crucial for enhancing the capacity of the Brazilian electricity sector amid a diversification of generation sources, including renewables.

These new projects demonstrate ENGIE’s commitment to reinforcing Brazil’s energy infrastructure, driving modernization and expansion of the national network to ensure a more integrated, reliable system capable of supporting increased renewable energy integration and efficiently connecting production to consumption centers. Leveraging robust long-term concession agreements and a regulated electricity transmission market that delivers predictable, inflation-indexed revenues with minimal counterparty risk, will allow the Group to generate sustainable long-term value. 

With nearly 6,000 kilometers (including 3200 in Brazil) of power transmission lines and 56 substations (including 22 in Brazil) already operated by the Group in South America (Chile, Peru, and Brazil), as well as an additional 1600 kilometers of lines, 14 new substations under construction, ENGIE is establishing itself as a key player in the development of strategic energy infrastructure in the region. 

“By expanding Brazil’s transmission infrastructures with advanced synchronous condenser units and new power transmission lines, ENGIE is reinforcing Brazil energy security, and accelerating renewables integration. These awards mark a significant milestone towards our goal of operating 10,000 kilometers of transmission assets by 2030 and underscores our commitment to develop regulated power networks within ENGIE’s portfolio.”  said Cécile Prévieu, ENGIE's Executive Vice President in charge of Networks activities.