SAO PAULO, Oct 31 (Reuters) - Brazilian power company

Axia Energia and a fund owned by lender BTG Pactual

emerged on Friday as the main winners in a local

energy transmission auction, securing projects set to expand and

strengthen the country's power grid.

The only power transmission auction in Brazil this year

offered seven lots for the construction of transmission lines

and substations, with total investments estimated at 5.5 billion

reais ($1.02 billion). The projects will start operating within

five years.

Axia, formerly known as Eletrobras, committed to the largest

investment in the auction - 1.63 billion reais - by winning four

projects in the states of Minas Gerais, in southeastern Brazil,

and Rio Grande do Norte, in the country's Northeastern region.

The largest energy transmission operator in the country,

Axia will seek to bring forward the start of operations for the

projects, said the firm's Vice President of Expansion

Engineering, Robson Pinheiro.

The other big winner was BTG's Warehouse investment fund,

which won a single lot, but one that has an estimated allocation

of 1.24 billion reais. The project connects northern state of

Rondonia to the center-western state of Mato Grosso.

Brazilian power firm CPFL also won a project, located in the

country's South region, while Portugal's EDP won one in the

Center-West region.

Twenty groups had qualified for the auction, including

companies such as Engie Brasil, Alupar,

and Taesa.

($1 = 5.4039 reais)