Neoenergia entered a strategic partnership with GIC, selling a 50% stake in its transmission assets to enhance financial support for growth and infrastructure development in Brazil's energy sector.

Target Information

Neoenergia, a key player in Brazil's energy sector, operates through five subsidiaries that provide electricity to approximately 16.7 million customers across the states of Bahia, Pernambuco, Rio Grande do Norte, the Federal District, and parts of Paraíba, São Paulo, and Mato Grosso do Sul, servicing a population of over 37 million. The company is also involved in the transmission of electric power, managing the operation and maintenance of transmission lines and substations with voltages of 230 kV or higher, which are part of the National Integrated System (SIN). These assets generate revenue through Allowed Annual Revenues (RAP), derived from Transmission Auctions and/or authorizing resolutions that collect funds from system users.

Since acquiring Neoenergia Elektro in August 2017, Neoenergia has integrated an additional 578 km of transmission lines into its network and ten transmission substations, including one owned and nine shared, located in the states of Mato Grosso do Sul, São Paulo, Santa Catarina, and Ceará. Additionally, in the 2017 auction conducted by ANEEL, Neoenergia secured two transmission concessions that encompass four lines extending 1,074 km and six substations across the states of Tocantins, Piauí, Bahia, Ceará, and Paraíba.

Industry Overview

The energy distribution and transmission sector in Brazil plays a crucial role in meeting the growing demand for electricity in an increasingly urbanized society. With a steady influx of investments in infrastructure and renewable sources, the industry is being resh