At an Aneel auction, the company auctions lots for the construction of almost two thousand kilometers of lines in the states of Minas Gerais, São Paulo and Mato Grosso do Sul

Neoenergia closed two lots in the transmission auction 001/2022, held by the National Electric Energy Agency (ANEEL), on Thursday (30). Lot 2, a project of greater extension offered, foresees the construction of 1,707 kilometers of lines between the states of Minas Gerais and São Paulo and was acquired by the Annual Allowed Revenue (RAP) of R$ 360 million, with a discount of 50.33%. The forecast of investment by the regulatory body in this venture is about R$ 4.938 billion. The company also won lot 11, located in Mato Grosso do Sul, with RAP of R$ 38.2 million and discount of 45.74%.

The acquisition of the assets reinforces Neoenergia's expansion in the transmission segment, and consolidates the company's prominent performance in the development of the country's electricity sector. Neoenergia foresees the delivery of projects in advance of capex deadlines and savings in relation to the initial estimate of the regulatory body, in line with the efficiency model adopted in the company's transmission projects.

" We have a relevant role in the execution of transmission project in the last five years that strengthens us in this market. We have excellent partnerships with construction companies and suppliers, which allow us to achieve very favorable conditions", says Eduardo Capelastegui, future CEO of Neoenergia from July 15, 2022.

Lot 2 will be the largest extension project under construction by the company. The works aim to expand the transmission capacity of the northern region of Minas Gerais, to flow the energy generated by renewable sources. The project consists of three lines with voltage at 500 kV, which represent the majority of the project, in addition to a line at 440 kV. The new 500 kV New Bridge 3 substation will also be built. The ANEEL deadline for the commencing of the commercial operation is 60 months from the signing of the concession contract on September 30, 2022. ANEEL estimates the generation of 9,875 jobs during construction.

Lot 11 foresees the construction of 291 kilometers of lines in nine municipalities of Mato Grosso do Sul, with two lines in 230 kV and sectionings and a substation 230/138 kV Paraíso 2 – 2x150 MVA. The objective is the integration of the Small Hydroelectric Power Plants (SHPs) Fundãozinho, Areado and Bandeirante and connection of distribution in the region of Paraíso. The investment provided by ANEEL is R$ 499 million and the deadline estimated by the regulator for completion is 48 months. About 1,248 jobs are expected during construction.

In the last auctions of the segment, between 2017 and 2021, the company finished 13 projects, expanding its participation in events of this size. Today, there are 2,334 kilometers of lines in operation and 4,031 kilometers under construction, distributed throughout the five regions of Brazil.

In its latest projects, the company has demonstrated efficiency and commitment to value creation, respecting a strict capital allocation policy and producing safe returns for its shareholders. The lots auctioned at the December 2017 auction had the commercial operation started with an average advance of 15.6 months in relation to the ANEEL term and Capex savings of 33%, compared to the originally estimated by the regulator. The projects acquired in the 2018, 2019, 2020 and 2021 games are underway.