Analysts predict strong competition at auction

The auction of energy transmission in Brazil, which will be held next Thursday, should have fierce disputes, even in the face of the impacts of the pandemic on the economy. According to Reuters, investors will be offered a total of 11 lots of ventures that will require about 7.3 billion reais over the next five years. 

The expectation among experts is that everyone will receive offers, with significant participation of large companies in the sector. In addition, the presence of electric stalwarts with a tradition in power transmission should be favored by a new rule approved by the National Electric Energy Agency (ANEEL), which prohibits the sale of concessions before the start of the commercial operation of the projects.

These changes, however, will not prevent smaller groups from entering the event, such as engineering and construction companies and financial agents, who keep an eye on the assets to be bid, market sources added.

Companies such as state-owned Eletrobras (ELET3; ELET5; ELET6), in addition to Engie (EGIE3), Neoenergia (NEOE3), EDP Brasil (ENBR3), Equatorial (EQTL3), Taesa (TAEE11), Transmissão Paulista (TRPL4), CPFL (CPFE3) and Alupar (ALUP3; ALUP4; ALUP11) are potential names in the competition, as well as construction companies, which had been appearing at previous auctions, Credit Suisse analysts said in a report on Sunday.


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