ISA CTEEP wins two lots in one of the largest transmission auctions in Brazil's history

• Company wins Lots 3 and 6
• ANEEL’s investment forecast for these projects reaches R$ 3.9 billion - 25% of the total amount of the tender
• Company strengthens national expansion with more than 1,000 km of transmission lines in Espírito Santo and Minas Gerais

São Paulo, June 30, 2022 - Focused on the strategy of growth with sustainable value generation and national expansion, ISA CTEEP, a leader in the transmission sector in Brazil, has won lots 3 and 6 in one of the largest transmission auctions in the country's history, held today by National Electric Energy Agency (ANEEL), at the headquarters of B3 S.A. – Brasil, Bolsa, Balcão (B3), in São Paulo. A total of around R$ 3.9 billion will be invested (ANEEL Capex) for the construction of approximately one thousand km of transmission lines and substations, representing 25% of the auction’s total investment.

“This is the highest investment we make in one single auction since 2016. This important achievement is in line with our strategy of generating sustainable value, through projects that contribute to expanding the Brazilian electric energy transmission system, strengthening our activities beyond São Paulo”, explains Rui Chammas, ISA CTEEP’s CEO.

Lot 3 will enable the expansion of the energy flow capacity of the northern region of Minas Gerais. The main distinguishing feature of this lot is the boosting of the sustainable agenda in the energy sector, since it will contribute to the flow of energy generated by renewable sources.
Lot 6 is aimed at supplying the loads in the region of Guarulhos (SP).

“This is the highest investment we make in one single auction since 2016. This important achievement is in line with our strategy of generating sustainable value, through projects that contribute to expanding the Brazilian electric energy transmission system, strengthening our activities beyond São Paulo”, explains Rui Chammas, ISA CTEEP’s CEO.

Lot 3 will enable the expansion of the energy flow capacity of the northern region of Minas Gerais. The main distinguishing feature of this lot is the boosting of the sustainable agenda in the energy sector, since it will contribute to the flow of energy generated by renewable sources.
Lot 6 is aimed at supplying the loads in the region of Guarulhos (SP).

A total of eight thousand jobs will be created.

With the lots won in this auction, the company totals 16 projects won in auctions since 2016, which add up to an ANEEL investment of over R$ 10 billion and provide an increase in the Annual Allowed Revenue (RAP) of approximately R$ 983 million. Of these projects, ISA CTEEP has already energized seven with an average 7-month advance over the regulator's schedule.

This year' s first auction offered thirteen lots in 13 states of the country. According to ANEEL, the total estimated RAP is R$ 2.8 billion. Also according to the regulatory agency, around 31.7 thousand direct jobs will be created with the project’s construction, encompassing R$ 15.3 billion investments and 5,425 km, of transmission lines and 6,180 megavolt-amperes (MVA) transformation capacity of substations. The agreements will be effective for 30 years, and the term for the completion of works ranges from 42 to 60 months. The execution of the agreements is scheduled for September this year.

About ISA CTEEP

With a staff comprising over 1,500 employees, ISA CTEEP is present in 18 States, operating a complex transmission network, responsible for the flowing of 30% of all electricity consumed in the country, and 94% of the State of São Paulo. Its electrical system comprises more than 29,000 km of circuits (about 28,000 in operation and 1,500 under construction), including owned and jointly controlled assets, and 133 owned substations (126 in operation and seven under construction) with voltage up to 550 kV. Its controlling shareholder is the Colombian company ISA, holder of 35.82% of the total capital.

• Press information: ISA CTEEP – RPMA Comunicação
  Kelly Queiroz – (11) 94216-3176
  Sara Saar – (11) 97566-2433
  [email protected]