Outlook

AND EXPANSION

CTEEP will maintain its competitive posture, on the lookout for opportunities that offer complementarity, synergies and competitive advantages.

The outlook for the Brazilian electricity transmission sector is promising. According to data from a 10-year prospective study published in 2008 by EPE, the Brazilian government’s Energy Research Corporation, generating capacity is expected to grow from 100,000 to 155,000 MW, to meet the country’s average GDP and population growth. As a result, it will be necessary to build 40,000 km of transmission lines, with investments of R$ 40 billion: R$ 25 billion for new lines and R$ 15 billion for substations and transformers.

For 2009, ANEEL plans to call for tenders for 21 new substations, totaling 7,656 MVA, and 12 new transmission lines, totaling 3,312 km.

CTEEP will maintain its competitive posture, on the lookout for opportunities that offer complementarity, synergies and competitive advantages for its business. Aware of the importance of its activity for the development of the country, the company will provide sustainable growth, with the lowest possible environmental impact and respecting the communities where it operates.

To this end, it has an investment plan that will allocate over R$ 2 billion in the three years 2009-2011, taking into account the investments resulting from the successful bids in the transmission auctions in 2008. These resources have specific applications and demands, and are divided into actions focused on reinforcements and expansions, and those related to improving the system and its reliability. They do not include acquisitions at forthcoming auctions.

Triennial Investment Plan 2009-2011      
(million R$) 2009 2010 2011
Corporate 14.2 11.8 12.3
Type I reinforcement 291.1 340.5 134.2
Type II reinforcement 61.9 29.6 13.3
New connections 43.3 1.3 0.2
Transmission Modernization Plan 45.4 79.6 61.2
Systemic Interest Facilities Modernization Plan 27.1 35 29.4
Labor force capitalization 7.1 7.4 7.8
Telecom 57.7 - -
Total for CTEEP 547.8 505.2 258.4
IENNE 55.8 - -
Pinheiros 213.4 127.2 -
IEMadeira 30.2 151.8 250.8
IESul 21.3 16.5 -
Total for new companies 320.7 295.5 250.8
Overall Total 868.5 800.7 509.2

The 2009-2011 Investment Plan follows the CTEEP Transmission Expansion Plan (TEP/CTEEP), which includes a set of planned works to be implemented in the five years 2009-2013. With the aim of expanding and reinforcing the capacity of the transmission system, these works aim to satisfy the growth of the electricity consumer market, the need to connect energy production with centers of consumption, and exchanges of energy between the subsystems of the Brazilian interconnected system.

The TEP/CTEEP includes 170 works for the coming three years and plans for a 3,148 MVA increase in transformer capacity, 174 km of new transmission lines and 1,793 MVAr of capacitive reactive compensation. In line with the expansion in energy supply and the growing demand of the consumer market, including distributors and consumers, the TEP/CTEEP includes 24 new connection works for the period.