The power sector in Brazil is separated into three segments: generation, distribution and transmission.
The power comes from generation sources (wind, thermal, hydroelectric) is transported through transmissions lines and substations to be distributed to where consumption takes place.
The auction is won by the bidder that offers the lowest annual revenue for the asset on offer. The concessionaire becomes responsible for the construction, operation and maintenance of the transmission facilities under its concession.
ANEEL is the regulatory agency of the power sector as a whole. It is responsible for inspecting the industry’s agents, setting tariffs, implementing Federal Government policies and guidelines, among other attributions.
- Predictable revenues, considering that, transmission assets have contracted income awarded the time of the auction, which is earned from the date the asset begin operations;
- Revenues based on the availability of infrastructure and not in the volume of power transported;
- Inflation adjusted revenues, received annually by the IPCA index and reviewed in the 5th, 10th and 15th year of operation;
- Negligible default rate in the sector: transmission companies’ are paid by all agents of the National Interconnected System (SIN): generators, distributors or free clients. In order to guarantee the safety and credibility of the process, the National System Operator (ONS) organizes the payments of tariffs between the parties.
The National Grid
The National Grid is responsible for the transmission of electricity in Brazil. Only 1% of the electricity demand in the country is found outside the National Grid, in small isolated systems, mainly located in the Amazon region.
Its lines are approximately 140 thousand km in length, with voltage greater than or equal to 230 kV. It is operated centrally by the National System Operator (ONS).
The Grid is divided into four subsystems, which refer to the regions: South, Southeast/Centre-West, Northeast and part of the Northern region of the country.
Transmission System – 2017