Auctions

In 2008, 42 projects were energized, along with the installation of 36 km of new transmission lines, 11.3 km of upgraded lines and 1,040 MVA of installed capacity.

In addition to its investments in the existing grid, CTEEP also invests in the acquisition of new transmission line lots auctioned by ANEEL, in order to continue its strategy for growth, strengthening its presence in São Paulo and expanding its operations into other regions of Brazil.

In 2008, the four auctions held by ANEEL offered the market business opportunities with annual revenues of over R$ 1.2 billion. Of this total, R$ 210 million corresponds to the lots acquired by CTEEP. The company played a major role – both independently and in consortiums – in the auctions held in June and November 2008, where important lots went under the hammer and subsidiaries were set up to provide public power transmission services.

In the first auction, CTEEP acquired five lots that will allow it to consolidate its operations in the state of São Paulo and expand its presence into the south of the country, with assets in the states of Paraná, Santa Catarina and Rio Grande do Sul. The total PAR value of the lots is R$ 29.3 million.

In the auction held in November 2008, CTEEP led the Madeira Transmissão consortium, in which it holds a 51% stake, together with Furnas Centrais Elétricas (24.5%) and CHESF – Companhia Hidrelétrica do São Francisco (24.5%). Two important lots were acquired, one for the construction of a direct current line that will pass through the states of Rondônia, Mato Grosso, Goiás, Minas Gerais and São Paulo, and the other for the construction of a rectifier station in Rondônia and an inverter in São Paulo, to transform alternating into direct current, and vice versa.

The Madeira transmission project is the largest transmission line under construction in the world, with a total length of 2,375 km, and represents CTEEP’s entry into direct current technology. The PAR value of the two lots is approximately R$ 328 million, of which R$ 167 is due to CTEEP. The companies set up to build, operate and maintain the transmission assets acquired in the most recent auctions will channel total investments in the order of R$ 4 billion in the next four years.