Brazil's priciest power transmission auction expects few bidders

SAO PAULO, Dec 7 (Reuters) - Brazil's largest-ever power transmission auction by expected investment volume may see little competition, experts and executives said, as the need for billions of dollars in investments and tech expertise may dissuade potential bidders.

In the last five years, Brazil's transmission lines auctions have had on average at least six bidders for each allotment, according to national energy regulator Aneel, but the trend could change if the current outlook is confirmed.

Brazil is expected to sell three power transmission projects at next week's auction, scheduled for Dec. 15, totaling 4,470 kilometers (2,778 miles) across more than five states.

Planned investments currently sit at 21.7 billion reais ($4.42 billion), the largest amount ever demanded in a similar auction in Brazil.

Chinese company State Grid and Brazil's largest power utility Eletrobras are considered the top candidates to take the auction's darling, an 18 billion real line requiring expertise on high-voltage direct current (HVDC), a system both have experience operating.

While Eletrobras has already publicly showed it intends to bid, State Grid told Reuters that while the company is "always alert to business opportunities in power transmission," it does not comment on specific moves related to auctions.

Given the capex needed, potential bidders include alliances between fund managers and utilities, a partnership model seen in recent transmission auctions in Brazil, said Jose Roberto Oliva Junior, partner at law firm Pinheiro Neto Advogados.

Local power transmission companies, such as Isa Cteep , which was a big winner in the year's first auction, and Taesa have already said they will not bid.

Ana Calil and Leonardo Miranda, partners within law firm TozziniFreire Advogados' infrastructure and energy area, also said they are not expecting new players, like real estate firms, which sometimes enter the contest, to bid in next week's auction. ($1 = 4.9107 reais) (Reporting by Leticia Fucuchima; Writing by Andre Romani; Editing by Lisa Shumaker)