TITLE:
Assessment of Initial Investment Valuation Methodology of Brazilian Power Transmissions Auction
AUTHORS:
André L. V. Gimenes, Raphael B. Heideier, Miguel E. M. Udaeta, Marco A. Saidel
KEYWORDS:
Brazilian, Auction, Clearing Prices, Transmission Line, Valuation
JOURNAL NAME:
Journal of Power and Energy Engineering,
Vol.5 No.1,
January
22,
2017
ABSTRACT: This paper aims to assess the Initial Investment Valuation Methodology of the local regulator, facing the results of auctions, due to the high occurrence of low clearing prices observed from 2003 to 2008 and the high percentage of auctions without any bidder recently. The regulator investment forecasted defines the maximum value of Yearly Allowed Revenue and the bidder that offers the lowest YAR value wins the auction. The first type of analysis considers project cost, location, execution deadline, transmission line extension and type of all actions from 1999 to 2015, totalling about 3.361 billion USD. It was not found any correlation of those variables and the result of the actions. The second analysis compared the equipment and the additional costs breakdown of the regulator investment forecast with the real investment in projects from 2009 to 2013 and it rarely surpasses 5%. Suggestions are proposed based on the analysis.