ENGIE was one of the winners in the concession auction held by the Brazilian Electric Energy Agency (Aneel) on Friday, June 30 at the São Paulo Stock Exchange – B3. The winning bid offered a final Annual Permitted Revenue (RAP) of R$ 249.3 million. The contract covers the engineering, construction, operation and maintenance of 1,006 kilometers of electricity transmission lines in the States of Bahia, Minas Gerais and Espírito Santo, meeting the demand for the flow of energy generated by renewable sources in the Northeast Region to the Southeast region.

“This achievement aligns with ENGIE’s position as an energy infrastructure investment platform, strengthening our strategy of balanced management and diversification of the assets portfolio. Responsibly accelerating this agenda is our highest priority and we continue to invest in our teams and in the quality of our work. A meticulous process ensured good commercial terms combined with our high capacity to deliver projects with quality and safety, and to act diligently to meet our commitments with deadlines and financial returns”, observes Eduardo Sattamini, Chief Executive and Investor Relations Officer of ENGIE Brasil Energia.

“Investment in transmission lines is strategic for the ENGIE Group in Brazil and aligns with the company’s global purpose of leading the energy transition. The sector contributes directly to de-carbonizing the economy by enabling better outflow of renewable energy, connecting generation hubs and consumer centers. The outcome of the auction makes this business line even more material for ENGIE domestically” comments Maurício Bähr, Chairman of the Board of Directors of ENGIE Brasil Energia.

About the Lot 5

Among the largest in this bidding round, lot 5 involves the states of Bahia, Espírito Santo and Minas Gerais with an expected investment up to BRL 2.66 billion and completion period of 66 months according to the Electric Energy Agency.

The duration of the concession of the public transmission service will be 30 years, as from contract signature date, scheduled for Sep/29/2023.

Company activities in the segment

In the Transmission segment, ENGIE has the Gralha Azul system with a total of 900 kilometers of line in the state of Paraná, and the Novo Estado project, with a further 1,800 kilometers in the states of Pará and Tocantins, both concluded in February, ahead of the schedule established by Aneel. Still in the process of implementation is the Gavião Real Project, for which the Company made a successful bid in Aneel’s first auction in 2022. The project consists of the expansion of the Itacaiúnas Substation to meet the needs of the energy distribution network in that state Pará and will be incorporated into Novo Estado.