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Higher discounts represent more potential savings for final consumers, as the winning consortiums' revenue will be considered when calculating electric power bills.
The auction counted with 47 participants and awarded all lots offered. All contracts are expected to attract 6bn reais (US$1.6bn) in investment in 2562km of lines and 12,223MVA of power in sub-stations.
Indian Sterlite Power Grid won six lots and was the biggest winner. The company also took the largest project on offer, lot 3, with an average discount of 58.5%. Total investment in this lot, which comprises lines in Ceará and Rio Grande do Norte states, is estimated at 85mn reais. The firm won other lots in Paraíba, Sergipe, Bahia, Goiás, Pará and Minas Gerais states.
Brazil's Energisa also won one lot in Pará state, with a 33.5mn-real bid and a 57.2% discount. Local firm CPFL won one lot in Ceará state, with a 7.9mn-real bid and 52.8% discount. Big companies such as Engie and EDP participated but did not take any lot.
The auction began after a delay of seven hours due to an injunction presented by JAAC Materiais e Serviços, which did not initially qualify to participate because it did not present financial guarantees. This decision was reviewed and the company participated in the competition but did not present a winning bid.
Despite the difficulties, power watchdog Aneel celebrated the results.
"This auction was extremely successful, with a clear demonstration of investor's trust in Brazil's electric power segment," Aneel's director André Pepitone said.
Projects must start operations between 36 to 63 months after contract signing. The complete list of winners can be seen here.