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

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Page 1: Isolated generation systems in Amazon, real situation and ... · 16. Highlights of 2019. Belo Monte largest Brazilian hydroelectric plant. 3,667 MW in 2019 ... Logistics. Because

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

Page 2: Isolated generation systems in Amazon, real situation and ... · 16. Highlights of 2019. Belo Monte largest Brazilian hydroelectric plant. 3,667 MW in 2019 ... Logistics. Because

BrazilCountry Overview

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Brazil – Economy

3

Source: Climate Transparency - Brown to Green Report 2019.

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4

35,690

22,915

60,769

101,787

163,441

0

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

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8%

1%

<1%

13%

Brazil – Power SectorInstalled Capacity (2020)

170,027 MWof the country

5.3%

5

Hydraulic

87%Clean Energy

Thermal

Nuclear

Wind & Solar

65%

12%

Biomass

Other

Source: ANEEL

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Brazil – Power Sector

6

Evolution of Transmission – 1960

Generation: 4,8 GW

Transmission System

Source: Eletrobras

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Brazil – Power Sector

7

Evolution of Transmission – 1970

Generation: 11 GW

Transmission System

Source: Eletrobras

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Brazil – Power Sector

8

Evolution of Transmission – 1980

Generation: 33,5 GW

Transmission System

Source: Eletrobras

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Brazil – Power Sector

9

Evolution of Transmission – 1990

Generation: 53,1 GW

Transmission System

Source: Eletrobras

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Brazil – Power Sector

10

Evolution of Transmission – 2000

Generation: 73,7 GW

Transmission System

Source: Eletrobras

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Brazil – Power Sector

11

Evolution of Transmission – 2010

Generation: 112,4 GW

Transmission System

Source: Eletrobras

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Generation: 143,7 GW

Brazil – Power Sector

12

Evolution of Transmission – 2016Transmission System

Source: Eletrobras

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Transmission System, by voltage levels

1313

Fonte:Aneel. Boletim de Monitoramento do Sistema Elétrico. Fev de 2020.

155.605 kmof Transmission

Lines

230 kV60.119 km

38,6%

500 kV53.706 km

34,5%

600 kV12.816 km

8,2%

345 kV10.321 km

6,6%440 kV6.756 km

4,3%

750 kV2.683 km

1,7%

800 kV9.204 km

5,9%

Brazil – Power Sector

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Eletrobras

Page 15: Isolated generation systems in Amazon, real situation and ... · 16. Highlights of 2019. Belo Monte largest Brazilian hydroelectric plant. 3,667 MW in 2019 ... Logistics. Because

Largest Energy Company in Latin America

15

Shareholding

10.23%5.92%2.97%

Funds fromGovernment

38.31%Others,

free float

Structureof Capital

Mar/2020

+1.5%Free float increase

136 SPEs

41 on sale

25 in extinction

14 in incorporation

62 total in 2020 (estimated)

SHAREHOLDINGSP&D

42.57%

Government

Employees: 13.089

Source: Eletrobras

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Generation

Eletronuclear + Itaipu8,990 MW

+7,336 MWin Brasil compared

to 4Q18

1,343 MW (18%)with Eletrobras participation

170,027 MWof the country

Eletrobras51,143 MWCapacity installed

1,343 MW (+3%)Net Aggregationin 2019

30.1%

5.3%

125 Plants58 Corporate67 SPES

16

Highlights of 2019Belo Monte largest Brazilian hydroelectric plant3,667 MW in 2019 (1,832.60 MW Elb)11,233MW in operation

HPP SinopCommercial operation of the two UGs begins, totaling 401.88 MW (196,92 MW Elb)

Wind power 70 MW in 2019 (67.23 MW Elb)

Hydraulic46,259 MW

96%Clean Energy

Thermal1,870 MW

Nuclear1,990 MW

Wind & Solar1,025 MW

4%

4%

90%

2%

Source: Eletrobras

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71,154 kmEletrobras transmissionbeing 64.894km ≥ 230 kV

TransmissionThe largest transmission company in Brazil

45.2%

of Brazil

+ 164 mi

+ 564 miO&M

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

78 corporateconstructions

Large, under construction, with potential revenue from

R$ 300 million

+728 miAdditional total RAP at Eletrobras companies in 2019, with emphasis on Chesf with R$ 290 mi

LT EletrobrasCompanies

LT Eletrobras Companieswithpatnerships

LT Eletrobras Others

Existent Future

2019

17

Exploration

Source: Eletrobras

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Our BusinessEvolution

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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 capacityOf projects under implementation

190MW

190 MW R$105.34Million/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

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100%Eletrobras Share

TPP SANTACRUZCurrent plantcapacity

Additional CapacityCycle Closing

350MW(Gas turbines)

150MW(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 ofCombined Cycle

Forecast of the beginning of commercial operation of the Cycle Closing

Apr/21

Source: Eletrobras

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NPP ANGRA3Total 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

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1,745MWBeginning of operation scheduled with Eletrobras participation by the end of 2026

Beginning of Commercial Operation

1,405MWNovember of

2026

150 MWIn

December 2021

Generation Projects in Construction

22

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

190 MWUntil

December 2020

Source: Eletrobras

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Amazon Challenges

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Brazilian Interconnected System (NIS) and Amazon Region

24

Source: Eletrobras

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NIS 10-year Expansion Plan

25

Source: PDE 2029 (EPE, 2020)

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Isolated Systems in Amazon

26

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)

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Isolated Systems Power Matrix and Emissions

27

94% of the energygenerated through

Diesel burning

High Emissions Intensity0,637 tCO2-eq/MWh

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

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Isolated Systems Logistics

28

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

Source: Eletrobras collection Source: Eletrobras collection

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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 currencyin 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

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Isolated Systems Energy Cost

30

High Cost

O&M

Diesel PriceLogistics Because of the low income profile

of the Amazon population, the high cost is subsidized

by consumers connected to the NIS

The 2020 subsidy budget isUSD 1.5 Billion

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Contradiction

31

94% Fossil Fuel

0.6 t CO2-eq/MWh

0.42USD/kWh

0.9 MWh/person year

0.7 inhabitant/km²

IsolatedSystems

NationalInterconnected

System

Sources: IBGE, ONS, ANEEL, and EPE

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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 millionconnections16.8 million

people benefitedUSD 5.5 billion

invested

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New Federal Program More Light for Amazon

33

Remote Regionsin Amazon with

electricity

Remote Regionsin Amazon

without electricity

Energy Universalization

in Brazil throughGrid integration

Light For AllAchievement

More Light For AmazonChallenge

SubstituteDiesel for Renewable

Provide RenewableEnergy Access to70,000 families

GRID INTEGRATION LOGIC ISOLATED SYSTEM LOGIC

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Future of the Power Sector

34

Source: World Economic Forum

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Telecommunications in Africa / Energy in Amazon

35

Going directly to the Future!

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Eletrobras Initiatives

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Existing Initiatives in Amazon Region

37

GREEN FUELFLOATING PHOTOVOLTAICAT SOBRADINHO HPP LAKE

Artificial Intelligence

Modular Photovoltaic Generation andStorage Solution

TECHNOLOGICAL PARTNERSHIPSSource: Eletrobras collection

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Proposed Solution

38

Eletrobras is working on giving these communities a direct leapinto the future and have their own clean, reliable and locallyproduced power that will make them a green sustainablecommunity. Eletrobras is working closely with its partners onmodular solar + storage off grid solutions that are much cheaperand cleaner than Diesel generators. These units will providepower to the houses and communities via mini and microgrids depending on the size and location of the community.

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Challenge

39

While conventional power generation sources work as baseloadpower working on a total connected load basis (kW) and consumershave a maximum connected power (kW) they operate with at anygiven time.

In contrast, renewable energy sources are intermittent, usingenergy storage to give stable supply and mainly operating on bothpower (kW) but most importantly and critically on energy basis(kWh) where the load curve plays a very important role in thesizing and availability of the system, where the consumer hasto adapt to the available energy in the system and the demandforecast.

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Challenge

40

Eletrobras and its partners are planning to include on the supplyside new smart energy management solutions and demandforecast and Machine Learning that would analyze the consumptionpatterns of the users along the day and the year and predict futureconsumption.

However there is no intelligence on the demand side to adaptto the energy available in the system and the systemavailability due to weather changes or to collective demandchanges.

The idea is to develop a protocol of how the demand sideshould be managed in a very intuitive way for even primitivepeople to understand and how to supply the energy availableintelligently

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Thank you!Pedro Luiz de Oliveira JatobáChief Generation [email protected]