“Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO,...

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“Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A

Transcript of “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO,...

Page 1: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

“Brazil’s Moment in the sun”Energy front – a key part of its economy

Jerson Kelman – CEO, Light S/A

Page 2: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

Brazilian energy source is renewable

45,9

12,9

6,7

54,1

87,1

93,3

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Brazil (2007)

Worldwide (2006)

OCDE Countries(2007)

RenewableNon-renewable

Page 3: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

Installed capacity:

104 GW

74% is hydro

Peak demand:

64 GW

(comparable to England or Italy)

Average production:

51GW X 8760 h/y = 447 TWh/y

90% is hydro

Brazil power sector at glance (2008)

Page 4: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

The transmission system

4 000 kmEurope

4 000 km

Isolated System

Interconnected System

Page 5: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

Per capita consumption of electricity

Page 6: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

Centralized dispatch

In order to take advantage of hydrological diversity, energy is transported through long distances.Power plants in the same river basin are own by different companies.

CEMIG

FURNAS

AES-TIETÊ

CESP

CDSA

Consórcios

COPEL

TRACTEBEL

ITAIPUBinacional

Rio Grande

Rio Paranaíba

Rio Tietê

Rio Paranapanema

Rio Iguaçu

CEMIG

FURNAS

AES-TIETÊ

CESP

CDSA

Consórcios

COPEL

TRACTEBEL

ITAIPUBinacional

Rio Grande

Rio Paranaíba

Rio Tietê

Rio Paranapanema

Rio Iguaçu

Page 7: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

Spot price is low most of the time...

Page 8: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

Generation

Free Consummers Captive Consummers

DistributionTransmition

Distribution Distribution tarifftariff

TUSTTUST TUSD TUSD

TUSTTUST

TUSTTUST

PPA (energy)

Free Consummers

TUSD - TUSD - Distribution network charge + taxes TUST – Distribution network charge + taxesDistribution Tariff = Energy + TUSDDistribution Tariff = Energy + TUSDPPA – Power Purchase Agreement

Long term power purchase agreements (PPAs)

Page 9: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

Results of recent auctions of energy(competition for the market, rather than in the market)

Sales: ~ 150 TWh/year

37% Hydro e 67% Thermal

(natural gas, oil and coal)

Total value: ~ US$ 110 billion

Page 10: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

Did Brazil run out of sites to build new hydro plants?

USAUSA

CongoCongoIndonesiaIndonesia

PeruPeruRussiaRussiaChinaChina

ColombiaColombiaIndiaIndia

BRAZILBRAZILCanadaCanada

ItalyItalySwedenSweden

NorwayNorwayJapanJapan

GermanyGermanyFranceFrance

10000 20 40 60 80Source: EPE

Page 11: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

Hydropower plants in the Amazon river basin

What would be the alternatives?

Page 12: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

Distance of potential hydro plant sites to the large cities

Page 13: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

Rio de Janeiro: pacification & formal economy

Page 14: “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A.

Rio de Janeiro: pacification & formal economy