Brazilian Power Sector - Current Issues - Pedro G. Seraphim [email protected].

Brazilian Power Sector

- Current Issues -

Pedro G. [email protected]

Confidential Information – Property of TozziniFreire Advogados

Agenda

Brazilian Power Sector Facts Sector’s Greenhouse Gas Emissions

Brazilian Power Sector Model

Wind Power Auction

Belo Monte Project

Renewal of Concessions


Brazilian Power Sector Facts

Brazilian Energy Matrix => 46% renewable

– World average is 12%

Power Sector Installed Capacity

– Now: about 103 GW (91% hydro)

– Planned for 2030: 130 GW (78% hydro)

only 2% of all carbon emissions in Brazil


Power Sector GHGs Emissions per capita

Brazil 1

Argentina 10

EU 40

USA 100


Power Sector Model (Law No. 10,848)

Brazilian - Expansion centrally controlled by the

Government

LDCs: Yearly declarations of power needs for 5 years

Auctions for projects to meet such needs

PPA with LDCs (ACR) or “reserve energy”

Preliminary Environmental License

Free consumers => 25% of the power market (ACL)


Exclusive Auction for Wind Power (Nov / 2009)

Estimated potential: 140 GW (or 300 GW?)

Reserve energy auction in Nov/2009

441 registered projects: ~14,000 MW

Transmission through ICGs (Shared Facilities)

20-year PPAs

Will it attract equipment manufacturers?

Is it really the best alternative at the moment?


Belo Monte Project

Installed capacity: 11,300 MW

Capacity factor (assured energy): ~ 5,000 MW

– virtually no reservoir

Challenges:

– Valuation (R$16 or R$30 billion?)

– Transmission (distance from load centers)

– Market (ACR / ACL / Self-Producers)

– Environmental licensing…


Belo Monte Project Location


Renewal of Concessions

Brazilian Power Sector - Current Issues - Pedro G. Seraphim [email protected].

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