Brazil's latest energy transmission auction attracted BRL12.7 billion (US$4 billion) in investments according to the country's power sector regulator company Aneel.
A total of 31 of the 35 projects equivalent to several substations with 13,132 MVA of total capacity and 7,068km of transmission lines were sold. 30 years concessions for the projects will be valid from the signing of the contracts. Constructions works for these transmission lines are expected to last between 36 to 60 months.
The sale was a highly competitive process after the Brazilian government increased the rate of return on power transmission investments last year.
Some of the biggest renewable energy producers in the country, Rio Grande do Norte, Bahia, Ceara and Piaui, are locations in which the transmission facilities will be built on, among the total of 19 states designated for the projects.
Aiming to eliminate part of the excess capacity in the country's power sector, Brazil's Ministry of Mines and Energy announced it will hold an auction by August 31 to terminate some previously awarded contracts.