ECOELCE PROJECT: Affordable energy from recyclingECOELCE PROJECT: Affordable energy from recycling

Angel FraileAngel FraileSustainability Development ManagerSustainability Development Manager

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Waste submitted by customers exchanged for power credits with a final recycling destination of the waste.

What’s Ecoelce?

Waste submitted by customers exchanged for power credits with a final recycling destination of the waste.

Why doing Ecoelce?

• 41,000 tons/month of solid residues (36.4% recyclable)

• No collecting systems working properly

• Diseases derived from residues.

• Population low income level.

• High rates of insolvency

• High rates of electrical power theft

Problem Problem

Waste submitted by customers exchanged for power credits with a final recycling destination of the waste.

Why doing Ecoelce?

• 41,000 tons/month of solid residues (36.4% recyclable)

• No collecting systems working properly

• Diseases derived from residues.

• Population low income level.

Problem

• High rates of insolvency

• High rates of electrical power theft

Problem

Waste submitted by customers exchanged for power credits with a final recycling destination of the waste.

Why doing Ecoelce?

"In the middle of difficulty lies opportunity"

Prof. Albert Gradvohl

Prof. Albert Einstein

CUSTOMERCUSTOMER

Waste submitted by customers exchanged for power credits with a final recycling destination of the waste.

Customer brings recyclable materials to the collecting points installed by the company in collaboration with local associations.

Materials formerly lying in the streets is collected and recycled by recycling companies

The waste material is valued and the amount is inmediately transferred to customers account, accesible on-line

The process

(*) Customers can also decide to donate the deducted amount to a social project

The solution

Amount accumulated on customers Energy Account (*)deducted from the bill each month.

Additional:

- To raise enviromental awareness.- To develop social projects in the community.- To reduce losses resulting from failure of

payment.- To reinforce the link between the company

and the community where it operates.

Main:

- To allow electricity access to segments of population with limited economic resources.

- To foster waste recycling.

Targets

-Reduction on diseases caused by the inadequate waste removal ,for instance, dengue.

-Reduction on environmental impact due to waste in streets.

-Development of recycling industry (more than 52 direct and 200 indirect jobs generated).

- 30% reduction on distribution net losses ratio.

- 60% reduction on failure to payment rate.

- At mid 2008:- More than 107.000 families benefiting

from the project- Aprox. 220.000 € on customers’ credits- More than 4,8 M tns (equivalent to 12.000

MWh of energy collected)- More than 61 collecting points

Outcomes

-One of the 25 biggest Brazilian innovations of the last decades- Business case study in UN publications, universities, etc.-Part of the ‘Responsible Business’ TV series broadcasted by CNBC.

-Only Brazilian project awarded by UN in the World Business and Development Awards, the first world awards that acknowledge private companies’ role on the fulfillment of UN Millenium Development Objectives

Acknowledges

-Succesful alliance management: Groups of neighbours involved in a collecting organization, academic support to the project, agreement with recycling industry and institutional support essential for the success.

-Flexibility on control and billing systems: The client can follow on-line his/her account movements.

-Scalability: The project is easily extendeble (already extended to Ampla and under analysis its extension to other distributors on the region).

Keys

Is this an isolated solution?

ENDESA’S SUSTAINABILITY PLAN 2008-2012:

MAIN CHALLENGES AND BASIC COMMITMENTS

To answer climate change challenges and opportunities

To reinforce company’s local rooting and legitimacy in the locations where it operates

Commitment with our clients.

Commitment with our people.

Commitment to good governance and ethical behaviour.

Commitment with our investors.

Commitment with the environment.

Commitment with technology and innovation.

Commitment with the society: our suppliers.

MAIN CHALLENGES BASIC COMMITMENTS

Sustainability Country PlansSustainability Territory Plans

ANALYSIS DONE FOR BUILDING THE STRATEGIC SUSTAINABILITY PLAN

Previous positioning of Endesa on indexes

Climate Change Strategy, Supply assurance and social action concentrate 80% of improving potential.

Stakeholders and opinion makers’ expectations

Sound concept and performance on Sustainability but poor massive communication.

Internal expectations and opinions

Sustainability is part of our DNA. Main challenges linked to climate change and social commitment.

General opinon surveys

Sustainability concept is not known and linked with environment. Social action required.

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Why reinforcing company’s local rooting is an strategic priority for Endesa?

Colombia2,829 MW 2.2 million customers

Argentina

4,514 MW 2.2 million customers

987 MW 5.1 million customers

Peru

1,599 MW 1 million customers

Chile

4,779 MW 1.5 million customers

SIEPAC

Two very different scenarios

•Infrastructure development

• Empowering local relations

• Cooperation in biodiversity conservation.

•Infrastructure development assuring supply

•Contribution to the development of the societies

CONTRIBUTION TO THE DEVELOPMENT OF THE SOCIETIES MEANS:

•To be closer to the community.

•To improve life quality of the population on concession areas.

•To develop BOP businesses.

Different priorities

How to do it?

Thank you very Thank you very muchmuch

Angel FraileAngel FraileSustainable Development ManagerSustainable Development Manager