The expansion of Brazil’s renewable energy matrix — with strong growth in intermittent sources such as solar and wind, alongside distributed generation — requires not only the construction of new generation projects but also a robust transmission infrastructure. This means well-designed auctions, clear concession processes, defined granting timelines, and financing models that provide security to investors. Here, we analyze the current landscape, regulatory challenges, the latest tenders, and the strategic implications for the sector.
Regulatory Landscape and Recent Tenders
The National Electric Energy Agency (ANEEL) and the Energy Research Company (EPE) have listed transmission auctions among their top priorities, recognizing that without adequate evacuation capacity, renewable projects remain underutilized or even unfeasible.
- Recently, Transmission Auction Notice No. 01/2026 ‒ ANEEL was the subject of Public Consultation No. 028/2025, with projected investments of R$ 3.31 billion. This auction is scheduled for March 27, 2026, and will cover transmission works (new lines, sectioning), substations, and modernizations.
- Another tender under public consultation involves the construction and maintenance of approximately 1,178 km of new transmission lines, with a transformation capacity of 4,400 MVA, in addition to sectioning, synchronous compensation, and automatic reactive power control. The projects will span 13 states, from Goiás to Rio Grande do Norte, Rondônia, São Paulo, and others.
- There are also particularly significant lots, such as Lot 4 of the recent transmission tender, estimated at over R$ 1.25 billion, aimed specifically at the 500/230 kV Vilhena 3 substation in Mato Grosso/Rondônia, to reinforce the Acre-Rondônia subsystem.
These initiatives demonstrate institutional recognition of the need to expand and modernize the transmission grid to ensure secure supply, reduce technical and operational losses, and effectively integrate new clean generation sources.
Persistent Challenges
Although robust tenders signal progress, several regulatory, operational, and financing challenges must be overcome to ensure transmission auctions fulfill their strategic role.
- Granting Timelines and Contract Duration The concession is the moment when the granting authority (the Union, via ANEEL) formally authorizes the transmission company to build and operate the assets. Recent tenders set specific deadlines, but the sector has pushed for greater stability. Regulatory changes or delays in decision-making processes (licenses, environmental permits, land expropriations) may delay project viability. For example, ANEEL approved the extension of the concession period for eight plants that won the Centralized Competitive Mechanism by up to seven years, under guidelines from MME Ordinance No. 112/2025, in order to release withheld funds.
- Regulation and Technical Criteria Debates are ongoing regarding evaluation parameters: Allowed Annual Revenue (RAP), guarantees, penalty criteria, and performance parameters. The maximum RAP serves as the reference point in transmission auctions, and discounts below this ceiling determine winners. Discussions also involve aspects such as reactive power, synchronous compensation, service quality, protocol standardization, and technical requirements for connection and operation (e.g., obligations with the ONS, CPST, and CCT connection contracts).
- Project Financing Transmission is a capital-intensive segment with high CAPEX, long payback periods, and regulatory or implementation risks that increase capital costs. Viable financial structures depend on legal certainty, predictability in tenders, stable concession contracts, guarantees, and, in some cases, the participation of public or multilateral financiers. Large lots (thousands of kilometers or high-voltage substations) require robust financing that accounts for construction timelines, environmental and expropriation risks, as well as future operational risks.
- Overcoming Environmental, Social, and Licensing Barriers Transmission works often cross vast areas, requiring environmental licenses, land regularization, community engagement, as well as federal, state, and municipal permits. The slowness of these processes can significantly delay delivery.
- Integration with Renewable and Distributed Generation The ability to transport energy from generation hubs — sometimes located in remote regions or areas with low population density — to consumption centers or main grids depends on well-dimensioned transmission. Without it, bottlenecks, saturation of existing lines, losses, and even curtailment of renewable output may occur. Distributed generation (DG) also imposes challenges on medium- and low-voltage networks, which, although not directly the responsibility of transmission auctions, depend on coordination between transmission and distribution, as well as regulation of agreements, connection costs, and system usage tariffs.
Strategic Implications and Opportunities
Given this scenario, companies, regulators, and investors can identify several avenues for action and opportunity:
- Actively and proactively participate in public consultations (e.g., Notice 01/2026, Consultation No. 028/2025) to influence technical and regulatory criteria. Understanding requirements for transformation, reactive power parameters, entry standards, guarantees, etc., from the outset is critical.
- Develop internal capabilities in engineering, licensing, regulatory analysis, and contract management to meet tender requirements, comply with deadlines, and mitigate risks.
- Structure partnerships with local or international financiers, including the use of mitigation tools such as infrastructure guarantees or regulatory insurance, to reduce capital costs and increase project attractiveness.
- Innovate in operation and maintenance, as the longevity of transmission assets demands high reliability. Remote monitoring, automation, digitalization, sensors, and predictive diagnostics are competitive advantages.
- Advocate for regulatory stability, transparency, and legal predictability. Sudden rule changes or reinterpretations can increase perceived risks and raise the risk premiums required by investors.
Conclusion
Transmission auctions and concessions are absolutely central to ensuring that Brazil harnesses its full renewable potential without facing transmission bottlenecks, high losses, or operational insecurity. Although recent initiatives and promising tenders exist, challenges remain — timelines, technical regulation, licensing, financing, and integration with distributed renewable generation.
For the sector to move forward strategically, sustainably, and transparently, it is essential for companies, regulators, and investors to work together. Only then will it be possible to build a robust, modern, and reliable transmission grid — not as a bottleneck to the energy transition, but as a lever for competitiveness, resilience, and shared value.
