Bolsonaro to lead signing ceremony for deals in electric sector

President Jair Bolsonaro is leading a contract signing ceremony on Monday (Mar. 25), with deals for energy transmission expected to draw approximately $3.4 billion in investment and 28 thousand direct jobs. Mines and Energy Minister Bento Albuquerque is to attend.

Directors from the National Electric Energy Agency (Aneel) and representatives from winning companies at the transmission auction held in December last year will sign concession deals for the construction of 55 transmission lines at the Planalto presidential palace.  The lines add up to 7,152 km in length, and include 25 substations with transformation capacity of 14,819 megawatts of power.

Enterprises are located in the states of Amazonas, Amapá, Espírito Santo, Pará, Paraná, Rio de Janeiro, Rio Grande do Sul, Bahia, Minas Gerais, Rondônia, Santa Catarina, São Paulo, and Tocantins.

Facilities should be brought into commercial operation in 48 to 60 months after the signing of the concession deals, lasting 25 years.

The auction had a 46.08 percent discount, so the revenues will be below the expected. This cut some R$ 986 million a year consumers, Aneel reported.