Growth
GRI EU6

CTEEP has played a key role as regards the country`s development, by providing a major contribution to the growth of the SIN, through investments in substations and transmission lines that have been set up over the past years.

The expansion of the Company’s business keeps pace with the growth of its own transmission system, acquisition of existing assets and its participation in auctions of available transmission assets. In 2012, the Company participated, without success, of two energy transmission auctions held by ANEEL. In the same period, investments made by CTEEP in reinforcements, modernization and improvement of existing assets, investment in workforce and capital increase in subsidiaries totaled R$ 952.2 million.

In 2012, a total number of 60 reinforcement, improvement and modernization projects were completed and put to operation, including the Basic Grid and other Transmission System Facilities (DITs), which accounted for a further R$ 29 million added to the Allowed Annual Revenue (RAP) granted to the Company, with investments in the amount of R$ 202 million.

These projects contributed a 283.75 MVA increase in CTEEP`s transformation capacity and enabled the construction and restoration of 150.6 km of transmission lines. Moreover, it was made feasible the installation of 207 current transformers, 203 section switches, 98 voltage transformers, 75 circuit breakers and 28 choke coils.

In light of the Government`s incentive to foster development of alternative and renewable sources of electric power generation, and considering the social and environmental impact from both the construction and expansion of Hydroelectric Power Plants, it should be noted that there is an increasing number of thermoelectric plants using biomass in the country (especially from sugarcane). This trend is expected to be intensified in the upcoming years, particularly in the Southeast region, and it is worth mentioning that CTEEP is particularly watchful as regards this further demand.

To that end, the Company has been striving to promote the integration of this new source of energy into the Brazilian electric power system through its transmission system network. In 2012, five connections of biomass power plants were set up, through an investment of R$ 1.2 million and RAP of R$ 10 million.

In 2012, the Company obtained authorization from the Brazilian Electric Power Agency to carry out 58 projects concerning reinforcement of the transmission system, which will yield further revenues estimated at R$ 13 million.


Subsidiaries:

IESUL
In 2012, one more project belonging to Lot I of Interligação Elétrica Sul – IESUL was put to commercial operations: the 230 kV Jorge Lacerda B transmission line – Siderópolis C3, located in the state of Santa Catarina. This concession agreement also includes the 230/69 kV Forquilhinha substation, already operational, and the 230 kV Joinville Norte – Curitiba C2 line, whose construction is in progress. This construction results from the increased demand for electric power in the South region of Santa Catarina State, deriving from the fiscal incentives intended to boost investments in installations of industrial complexes in that region. These projects added a further length of 47 km and 113 tower structures to the system.

Pinheiros
In 2012, the construction of the SE 345/138 kV Atibaia II was completed, a 400 MVA transformation substation, involving the construction of two 345 kV transmission line stretches, in two simple circuits, whose length consists in nearly 1.4 km in each line stretch.

Furthermore, approval was also granted to the reinforcement of Piratininga II substation, which entails the installation of two grounding transformers of 88/13.8 kV and 36.3 MVA, in addition to the installation of the respective 88 kV connection modules for both grounding devices.

The expansion of the 440/138 kV substation Mirassol II has also been authorized, with the installation of the second bank of 300 MVA transformers.

Serra do Japi
Substations Jandira e Salto, located in the state of São Paulo, were put into commercial operations, totaling 1,600 MVA of installed capacity. These projects will allow for a reinforced energy supply to the West and Northeast regions of the Greater São Paulo, an area that features a major industrial activity.


1Future revenues consider expansion or reinforcement in the electric power system, which will start generating revenues when completed.