Isolated generation systems in Amazon, real situation and - - PowerPoint PPT Presentation

Isolated generation systems in Amazon, real situation and challenges to transform the Amazon into a diesel-free environment

Brazil

Country Overview

Brazil – Economy

3 Source: Climate Transparency - Brown to Green Report 2019.

4

3 5,690 22,915 60,769 101,787 163,441 20000 40000 60000 80000 100000 120000 140000 160000 180000

Eletrobras CAGR (1962 to 2018): 6,18% CAGR (2008 to 2018): 4,85%

Installed Capacity Evolution (MW)

Brazil – Power Sector

Source: Eletrobras

8% 1% <1% 13%

Brazil – Power Sector

Installed Capacity (2020)

170,027 MW

• f the country

5.3%

5

Hydraulic

87%

Clean Energy

Thermal Nuclear Wind & Solar

65% 12%

Biomass Other

Source: ANEEL

Brazil – Power Sector

6

Evolution of Transmission – 1960 Generation: 4,8 GW

Transmission System

Source: Eletrobras

Brazil – Power Sector

7

Evolution of Transmission – 1970 Generation: 11 GW

Transmission System

Source: Eletrobras

Brazil – Power Sector

8

Evolution of Transmission – 1980 Generation: 33,5 GW

Transmission System

Source: Eletrobras

Brazil – Power Sector

9

Evolution of Transmission – 1990 Generation: 53,1 GW

Transmission System

Source: Eletrobras

Brazil – Power Sector

10

Evolution of Transmission – 2000 Generation: 73,7 GW

Transmission System

Source: Eletrobras

Brazil – Power Sector

11

Evolution of Transmission – 2010 Generation: 112,4 GW

Transmission System

Source: Eletrobras

Generation: 143,7 GW

Brazil – Power Sector

12

Evolution of Transmission – 2016

Transmission System

Source: Eletrobras

Transmission System, by voltage levels

13

13

Fonte:

• Aneel. Boletim de Monitoramento do Sistema Elétrico. Fev de 2020.

155.605 km

• f Transmission

Lines

230 kV

60.119 km 38,6%

500 kV

53.706 km 34,5%

600 kV

12.816 km 8,2% 345 kV

10.321 km 6,6%

440 kV 6.756 km 4,3%

750 kV

2.683 km 1,7%

800 kV

9.204 km 5,9%

Brazil – Power Sector

Eletrobras

Largest Energy Company in Latin America

15

Shareholding

10.23% 5.92% 2.97%

Funds from Government

38.31%

Others, free float

Structure

• f Capital

Mar/2020

+1.5%

Free float increase

136 SPEs

41 on sale 25 in extinction 14 in incorporation

62 total in 2020 (estimated)

SHAREHOLDINGS P&D

42.57%

Government Employees: 13.089

Source: Eletrobras

Generation

Eletronuclear + Itaipu 8,990 MW

+7,336 MW

in Brasil compared to 4Q18

1,343 MW (18%)

with Eletrobras participation

170,027 MW

• f the country

Eletrobras

51,143 MW

Capacity installed

1,343 MW (+3%)

Net Aggregation in 2019

30.1%

5.3%

125 Plants

58 Corporate 67 SPES

16

Highlights of 2019

Belo Monte largest Brazilian hydroelectric plant 3,667 MW in 2019 (1,832.60 MW Elb) 11,233MW in operation HPP Sinop Commercial operation of the two UGs begins, totaling 401.88 MW (196,92 MW Elb) Wind power 70 MW in 2019 (67.23 MW Elb)

Hydraulic

46,259 MW

96%

Clean Energy Thermal

1,870 MW

Nuclear

1,990 MW

Wind & Solar

1,025 MW

4% 4% 90% 2%

Source: Eletrobras

71,154 km

Eletrobras transmission being 64.894km ≥ 230 kV

Transmission

The largest transmission company in Brazil

45.2%

• f Brazil

+ 164 mi + 564 mi

O&M

• 195 km

(Net breakdown. Includes aggregation of 422.5 corporate km and sale of 617.2 km of SPEs, compared to 4Q2018)

78 corporate

constructions

Large, under construction, with potential revenue from

R$ 300 million

+728 mi

Additional total RAP at Eletrobras companies in 2019, with emphasis on Chesf with

R$ 290 mi

LT EletrobrasCompanies LT Eletrobras Companies withpatnerships LT Eletrobras Others Existent Future

2019

17

Exploration

Source: Eletrobras

Our Business Evolution

O que já entrou em operação em 2020

10 WIND FARMS

Eletrobras Share

The reported revenues are estimated and proportional to Eletrobras' participation in the SPEs

Generation Projects in Construction

19

Total capacity Of projects under implementation

190 MW

190 MW R$105.34

Million/year Estimated Revenue Total Investment Expected

R$ 875.17 million

(Historical value)

4 plants: began their operation in 2020 (40 MW) 5 Wind plants (123 MW) are authorized to operate in test and are scheduled for commercial operation in Apr/2020 The last wind farm, Casa Nova IA (27 MW), is scheduled for commercial operation in Oct/20

Source: Eletrobras

100%

Eletrobras Share

TPP SANTACRUZ

Current plant capacity Additional Capacity Cycle Closing

350MW

(Gas turbines)

150 MW

(Steam turbine)

Generation Projects in Construction

20

Total Investment

R$ 767 million

(base: Feb/20)

The reported revenues are estimated and proportional to Eletrobras' participation in the SPEs

Closing of

Combined Cycle

Forecast of the beginning

• f commercial operation
• f the Cycle Closing

Apr/21

Source: Eletrobras

NPP ANGRA3

Total capacity

1,405MW

Prevision of commercial operation

2026/Nov

Generation Projects in Construction

21

Eletrobras Share

100%

The reported revenues are estimated and proportional to Eletrobras' participation in the SPEs

Investment to be made

R$ 14.8 billion

Source: Eletrobras

1,745MW

Beginning of operation scheduled with Eletrobras participation by the end of 2026

Beginning of Commercial Operation

1,405MW

November of 2026

150 MW

In December 2021

Generation Projects in Construction

22

The reported revenues are estimated and proportional to Eletrobras' participation in the SPEs

190 MW

Until December 2020

Source: Eletrobras

Amazon Challenges

Brazilian Interconnected System (NIS) and Amazon Region

24 Source: Eletrobras

NIS 10-year Expansion Plan

25

Source: PDE 2029 (EPE, 2020)

Isolated Systems in Amazon

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Installed Capacity: ~1GW Number of systems: 272 Served population: 3.3 Million Population per system range: 15 to 365.000 inhabitants Systems max. demand range: 3.5 kW to 279 MW

Source: Plan of Services for Isolated Systems Horizon 2024 - Cycle 2019 (EPE, 2019)

Isolated Systems Power Matrix and Emissions

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94% of the energy generated through Diesel burning High Emissions Intensity 0,637 tCO2-eq/MWh

Source: Plan of Services for Isolated Systems Horizon 2024 - Cycle 2019 (EPE, 2019)

Isolated Systems Logistics

28

The roads to access remote regions are not available or are precarious

Source: Eletrobras collection Source: Eletrobras collection

Isolated Systems Logistics

29

• There are no roads to access many communities
• Diesel transportation depends on small boats
• Diesel is often stolen because fuel is a currency

in these regions

• Diesel may be used to burn Amazon Forest
• The drought period limits the draft of the boats,

which means that isolated communities must store diesel in tanks for months

• This situation created a diesel mafia in Amazon
• O&M work is difficult in isolated systems

Source: Eletrobras collection Source: Norte Energia collection

Isolated Systems Energy Cost

30

High Cost

O&M Diesel Price Logistics

Because of the low income profile

• f the Amazon population,

the high cost is subsidized by consumers connected to the NIS

The 2020 subsidy budget is USD 1.5 Billion

Contradiction

31

94% Fossil Fuel 0.6 t CO2-eq/MWh 0.42 USD/kWh 0.9 MWh/person year 0.7 inhabitant/km²

Isolated Systems National Interconnected System

Sources: IBGE, ONS, ANEEL, and EPE

Federal Program Light For All

32

Light for All Program universalized access to electricity in Brazil, except for 1% of the population concentrated in Amazon

Source: Brazilian Institute of Geography and Statistics (IBGE)

3.6 million connections 16.8 million people benefited USD 5.5 billion invested

New Federal Program More Light for Amazon

33

Remote Regions in Amazon with electricity Remote Regions in Amazon without electricity Energy Universalization in Brazil through Grid integration

Light For All Achievement More Light For Amazon Challenge

Substitute Diesel for Renewable Provide Renewable Energy Access to 70,000 families GRID INTEGRATION LOGIC ISOLATED SYSTEM LOGIC

Future of the Power Sector

34

Source: World Economic Forum

Telecommunications in Africa / Energy in Amazon

35

Going directly to the Future!

Eletrobras Initiatives

Existing Initiatives in Amazon Region

37

GREEN FUEL FLOATING PHOTOVOLTAIC AT SOBRADINHO HPP LAKE

Artificial Intelligence Modular Photovoltaic Generation and Storage Solution

TECHNOLOGICAL PARTNERSHIPS

Source: Eletrobras collection

Proposed Solution

38

Eletrobras is working on giving these communities a direct leap into the future and have their own clean, reliable and locally produced power that will make them a green sustainable community. Eletrobras is working closely with its partners

• n

modular solar + storage off grid solutions that are much cheaper and cleaner than Diesel generators. These units will provide power to the houses and communities via mini and micro grids depending on the size and location of the community.

Challenge

39

While conventional power generation sources work as baseload power working on a total connected load basis (kW) and consumers have a maximum connected power (kW) they operate with at any given time. In contrast, renewable energy sources are intermittent, using energy storage to give stable supply and mainly operating on both power (kW) but most importantly and critically on energy basis (kWh) where the load curve plays a very important role in the sizing and availability of the system, where the consumer has to adapt to the available energy in the system and the demand forecast.

Challenge

40

Eletrobras and its partners are planning to include on the supply side new smart energy management solutions and demand forecast and Machine Learning that would analyze the consumption patterns of the users along the day and the year and predict future consumption. However there is no intelligence on the demand side to adapt to the energy available in the system and the system availability due to weather changes

• r

to collective demand changes. The idea is to develop a protocol of how the demand side should be managed in a very intuitive way for even primitive people to understand and how to supply the energy available intelligently

Thank you! Pedro Luiz de Oliveira Jatobá Chief Generation Officer pedro.jatoba@eletrobras.com