ISA CTEEP constantly assesses market opportunities for growth and has been making progress in this context. The Company’s strategy is to expand its presence throughout Brazil by means of auctions and/or acquisitions that are synergistic with existing operations, while respecting the minimum required return.
In the last four years, the Company placed winning bids for thirteen lots in ANEEL’s transmission auctions, for a total ANEEL investment (weighted by ISA CTEEP’s stake) of BRL 5 billion, with an increase in RAP (2019/2020 cycle) of approximately BRL 567 million, once the assets become operational.
Three of the thirteen lots were won at ANEEL Auction 02/2019, held in December 2019, and represent an additional 379 km of transmission lines and 4,291 MVA in power, with ANEEL investment of BRL 1.3 billion and BRL 76 million in RAP.
In 3Q19, the Company energized the first lot out of the thirteen: IE Itapura (Bauru), 18 months ahead of ANEEL’s implementation schedule.
Project evolution is in line with the challenging estimated budget and schedule, which considers a reduction in CapEx and the anticipation of entry into operations ahead of ANEEL’s estimated schedule. By December 31, 2019, an approximate BRL 890 million had been invested in the 10 projects won in the auctions held from 2016 to 2018.
Another important avenue for growth lies with investment in reinforcement and improvement projects. In the past five years, the Company invested an average BRL 180 million/year, with associated average RAP of BRL 50 million/year. It is important to emphasize that these are average amounts and the investments are non-linear, as they depend on ANEEL Authorizing Resolutions. In 2019, the Company invested BRL 133 million in these projects and has already been granted authorizations to invest another BRL 500 million.
|Auctions||Subsidiaries||% ISA CTEEP||Location||ANEEL CAPEX
ISA CTEEP Participation
|Discount||RAP ISA CTEEP
|Contract signature||Implementation Deadline ANEEL||Necessity Date¹||Environmental
|Initiation of Construction||Entry in Commercial Operation|
|100%||Rio Grande do Sul||682||66,9%||38||Mar/20||Dec/24||Jan/20||3Q21||-||-|
|100%||Mato Grosso do Sul
2 Conditioned to Lot 2 (Alupar)
3 To receive the totality of RAP
ISA CTEEP and its wholly and jointly owned subsidiaries invested BRL 289.5 million in 4Q19, up BRL 201.5 million year-on-year. The change is mainly explained by the increased investments on pre-operational subsidiaries as construction progresses, in line with the challenging budget and deadlines, and by the increased level of reinforcement and improvement investments. Investments cannot be compared between periods because they operate with different project portfolios and depend on ANEEL Authorizing Resolutions. In 2019, total investments made were BRL 770.8 million.
|(BRL million)||4Q19||4Q18||Chg (%)||2019||2018||Chg (%)|
Updated on March 4, 2020.