Anticipating a boost in power transmission and distribution

Following the completion of several large power plants in Brazil, demand for transmission and distribution works is set to grow, says Tractebel's Latin America CEO Claúdio Maia.   

Maia talked to BNamericas about the company's operations in Latin America, including expectations for Brazil's next power generation auction in August.   

BNamericas: Which segments have seen more demanding lately? What are the trends you anticipate in the Brazilian market?  

Maia: Recently, more demand has come from the transmission and distribution markets, because that area has been having frequent auctions in Brazil lately, with at least two tenders per year and a lot of participation from private companies. Hydropower generation had fewer auctions lately, so our activities in this segment are less intense, but we also see growth in renewables power generation, mainly from wind and solar sources. We also anticipate big investments in urban mobility and infrastructure to help improve citizens' lives in the big cities.   

BNamericas: How is Brazil recovering from downtime due to the recent economic crisis?  

Maia: We believe in Brazil's potential. Recent years were challenging but the crisis will pass shortly. The country has many interesting investment opportunities and major works to be done in segments such as renewable power generation. There are also opportunities for development in power transmission and distribution due to the finalization of many generation plants in the last years. The power needs to be distributed and that will demand new projects.   

BNamericas: What are the expectations for [regulator] Aneel's next power generation auction?  

Maia:  We are in collaboration to help some interested companies to complete their basic engineering projects. Companies are interested mainly in small hydro generation plants and renewables.   

BNamericas: What is the importance of Latin America in your global portfolio?  

Maia: We need to be in the markets where we anticipate growth and Latin America has big potential, especially in renewables. We have permanent officers in Brazil, Mexico, Chile, Peru and Bolivia. But the Brazilian market is certainly our biggest one: of our 540 employees in Latin America, 430 are in Brazil.  

BNamericas: How do you see the recent changes in the Brazilian power market?   

Maia: The discussions on changes in Brazil's regulatory framework have been happening for some time now, but I believe the rules are already very clear and have been capable of attracting investments in the latest auctions.   

BNamericas: What are the main challenges of engineering companies in Brazil's power market today?  

Maia: The traditional companies are more experienced in big plants, but decentralized generation has grown in recent years, due to smaller plants and renewables projects.