Brazil has concluded its first transmission auction of 2026 with strong results for the power sector, awarding all five lots on offer and confirming CYMI Brasil, ENGIE and Enind Engenharia as the main winners.
The tender mobilised approximately R$3.3 billion in investment, spanning 11 states and reinforcing the expansion of the country’s electricity grid.
The process also stood out for its economic impact and tariff efficiency. The awarded Annual Permitted Revenue (RAP) values posted an average discount of 50.69% compared to the regulatory ceiling, translating into estimated savings of R$7.6 billion for consumers over the duration of the contracts.
The auction included the construction of 798 kilometres of transmission lines, the addition of 2,150 MVA of transformation capacity and the installation of 1,290 MVAR in reactive power compensation. It is also expected to generate nearly 8,500 direct jobs during the implementation phase.
Projects are distributed across the states of Bahia, Ceará, Mato Grosso, Minas Gerais, Pará, Paraná, Rio de Janeiro, Rio Grande do Norte, Sergipe, Santa Catarina and São Paulo, with execution timelines ranging from 42 to 60 months depending on project complexity.
Allocation of contracts by company
CYMI Construções e Participações emerged as one of the leading winners, securing Lots 1 and 5 and concentrating investments exceeding R$1.5 billion. Lot 5 alone represents close to R$1 billion and is expected to create more than 2,000 jobs, particularly in Mato Grosso and Pará.
ENGIE Transmissão de Energia Participações SA was awarded Lot 2 and all four sub-lots of Lot 3, the latter involving an estimated investment of R$1.3 billion. Its scope includes the installation of synchronous condensers, particularly in Brazil’s northeast, to support grid stability.
Meanwhile, Enind Engenharia, through the BR2ET Transmissora consortium, secured Lot 4 with investments exceeding R$240 million, aimed at strengthening transmission capacity in Sergipe and northern Bahia.
The projects include new 230 kV and 500 kV transmission lines, as well as the construction and expansion of substations with capacities of up to (6+1 reserve) x 133 MVA.
Synchronous compensation systems will also be deployed, particularly in Ceará and Rio Grande do Norte, enhancing operational stability and increasing transmission capacity in high-demand regions.
In addition, the developments will reinforce key electricity corridors, such as the Ponta Grossa–Canoinhas section and interconnections between Mato Grosso and Pará, expanding the reach of Brazil’s interconnected system.
Next steps in the tender process
Following this first auction, a second phase is planned, covering Lots 7 to 12, although the date has yet to be defined.
Lot 6 was excluded from the process as it was not included in the Consensual Termination Agreement. This lot referred to the 345 kV C3 and C4 transmission lines (North–Miguel Reale), each 14.5 km long and underground, supplying the São Paulo Metropolitan Region across its northern, eastern and southern subregions.
