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Brazil-Bolivia power interconnection at risk: delayed agreement may lead to exclusion of auction lot from 2027

Taesa operates 16,600 km of transmission lines across 19 Brazilian states, including those in the South and Northeast regions.
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The National Electric Energy Agency warns that the lack of legislative ratification of the binational agreement with Bolivia puts the inclusion of Lot 11 in the 2027 transmission auction at risk.

The National Electric Energy Agency (Aneel) has raised an alert to the Ministry of Mines and Energy (MME) regarding the expansion schedule of the national power grid. The hurdle lies in the need for the National Congress to approve a crucial international agreement that allows for energy interconnection between Brazil and Bolivia.

Without parliamentary approval, the technical and legal feasibility of the so-called Lot 11, scheduled to be part of the first transmission auction of 2027, is under threat. The process rapporteur at the agency, director Agnes da Costa, reinforced in an official letter that legislative uncertainty may force the definitive exclusion of these facilities from the auction, which is scheduled for April 30, 2027.

The weight of bureaucracy on energy security

The project in question is strategic for strengthening the power grid in Mato Grosso do Sul. It provides for the construction of a transmission line between the Corumbá 2 substation and the Bolivian border, as well as essential frequency converters, given that the electrical systems of the two countries operate differently.

Aneel has set November 2026 as the ideal deadline for legislative approval. This timeframe is essential for the agency to structure the bidding notice with the necessary legal certainty, ensuring that the process undergoes scrutiny by the Federal Court of Accounts (TCU) without complications.

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The lack of definition regarding legislative authorization could compromise legal certainty and the bidding schedule, potentially culminating in the withdrawal of the lot’s facilities from the auction planned for 2027.

A scenario of uncertainty for the electricity sector

The bilateral agreement, signed in March of this year, was sent to Congress in July but remains in slow progress. While the auction notice remains under public consultation until the end of October, the agency is seeking answers from the MME regarding the political negotiations necessary to unblock the issue, or, alternatively, confirmation that the project could proceed under other legal bases.

Completing the work is vital for regional energy infrastructure, aiming not only to support the local system but also to foster continental electricity integration. The future of this lot now depends on the speed with which parliament addresses the agenda, at the risk of a significant gap in the planning of the expansion of the Brazilian transmission network in the coming years.

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