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

Brazil – Power Sector Installed Capacity Evolution (MW) CAGR (1962 to 2018): 6,18% CAGR (2008 to 2018): 4,85% 180000 163,441 160000 140000 120000 101,787 100000 80000 60,769 60000 40000 22,915 Eletrobras 20000 5,690 3 0 Source: Eletrobras 4

Brazil – Power Sector 87 % Installed Capacity (2020) Clean Energy 65 % Hydraulic 13 % Thermal 170,027 MW 12 % Wind & Solar of the country 8 % Biomass 5.3 % 1 % Nuclear <1 % Other Source: ANEEL 5

Brazil – Power Sector Transmission System Evolution of Transmission – 1960 Generation: 4,8 GW Source: Eletrobras 6

Brazil – Power Sector Transmission System Evolution of Transmission – 1970 Generation: 11 GW Source: Eletrobras 7

Brazil – Power Sector Transmission System Evolution of Transmission – 1980 Generation: 33,5 GW Source: Eletrobras 8

Brazil – Power Sector Transmission System Evolution of Transmission – 1990 Generation: 53,1 GW Source: Eletrobras 9

Brazil – Power Sector Transmission System Evolution of Transmission – 2000 Generation: 73,7 GW Source: Eletrobras 10

Brazil – Power Sector Transmission System Evolution of Transmission – 2010 Generation: 112,4 GW Source: Eletrobras 11

Brazil – Power Sector Transmission System Evolution of Transmission – 2016 Generation: 143,7 GW Source: Eletrobras 12

Brazil – Power Sector 800 kV Transmission System, by voltage levels 9.204 km 5,9% 750 kV 2.683 km 1,7% 600 kV 12.816 km 8,2% 230 kV 60.119 km 155.605 km 38,6% of Transmission Lines 500 kV 53.706 km 34,5% 345 kV 10.321 km 6,6% 440 kV 6.756 km 4,3% 13 Fonte: Aneel. Boletim de Monitoramento do Sistema Elétrico. Fev de 2020. 13

Eletrobras

Largest Energy Company in Latin America Shareholding P&D SHAREHOLDINGS 38.31% 42.57% Structure Others, of Capital free float Mar/2020 Government 136 SPEs 41 on sale 2.97% 25 in extinction Funds from 10.23% 5.92% Government 14 in incorporation Employees: 13.089 62 total in 2020 (estimated) +1.5% Free float increase Source: Eletrobras 15

Eletrobras Highlights of 2019 Generation Belo Monte largest Brazilian hydroelectric plant 51,143 MW 3,667 MW in 2019 (1,832.60 MW Elb) 11,233MW in operation Capacity installed 125 Plants 1,343 MW (+3%) HPP Sinop Commercial operation of the two UGs begins, totaling 401.88 MW Net Aggregation 58 Corporate (196,92 MW Elb) in 2019 67 SPES Wind power 70 MW in 2019 (67.23 MW Elb) 96 % Clean Energy 30.1 % 170,027 MW 90 % Hydraulic 46,259 MW of the country Nuclear 4 % 1,990 MW 2 % Wind & Solar 5.3 % 1,025 MW Thermal 4 % 1,870 MW Eletronuclear + +7,336 MW 1,343 MW (18 % ) Itaipu with Eletrobras participation in Brasil compared 8,990 MW to 4Q18 Source: Eletrobras 16

Transmission The largest transmission company in Brazil +728 mi Additional total RAP at Eletrobras companies in 2019, 2019 - 195 km with emphasis on Chesf with R$ 290 mi (Net breakdown. Includes 71,154 km aggregation of + 164 mi 422.5 corporate km and sale of 617.2 Exploration Eletrobras transmission km of SPEs, being 64.894 km ≥ 230 kV + 564 mi compared to 4Q2018) O&M 45.2 % of Brazil 78 corporate constructions Existent Future Large, under construction, with LT EletrobrasCompanies potential revenue from LT Eletrobras Companies R$ 300 million withpatnerships LT Eletrobras Others Source: Eletrobras 17

Our Business Evolution

O que já entrou em operação em 2020 Generation Projects in Construction 10 WIND FARMS Total capacity 4 plants: began their operation in 2020 (40 MW) Of projects under 5 Wind plants (123 MW) are authorized to operate in implementation test and are scheduled for commercial operation in 190 MW Apr/2020 The last wind farm, Casa Nova IA (27 MW), is scheduled for commercial operation in Oct/20 Eletrobras Share Estimated Revenue 190 MW R$105.34 Million/year Total Investment Expected R$ 875.17 million (Historical value) Source: Eletrobras The reported revenues are estimated and proportional to Eletrobras' participation in the SPEs 19

Generation Projects in Construction TPP SANTACRUZ Current plant Additional Capacity Cycle Closing capacity 350 MW 150 MW Forecast of the beginning (Gas turbines) (Steam turbine) of commercial operation of the Cycle Closing Apr/21 Eletrobras Share 100 % Closing of Combined Cycle Total Investment R$ 767 million (base: Feb/20) Source: Eletrobras The reported revenues are estimated and proportional to Eletrobras' participation in the SPEs 20

Generation Projects in Construction NPP ANGRA3 Prevision of Total capacity 1,405 MW commercial operation 2026 /Nov Eletrobras Share 100 % Investment to be made R$ 14.8 billion Source: Eletrobras The reported revenues are estimated and proportional to Eletrobras' participation in the SPEs 21

Generation Projects in Construction 1,745 MW Beginning of operation scheduled with Eletrobras participation by the end of 2026 Beginning of Commercial Operation 190 MW 150 MW 1,405 MW Until In November of December 2020 December 2021 2026 Source: Eletrobras The reported revenues are estimated and proportional to Eletrobras' participation in the SPEs 22

Amazon Challenges

Brazilian Interconnected System (NIS) and Amazon Region Source: Eletrobras 24

NIS 10-year Expansion Plan Source: PDE 2029 (EPE, 2020) 25

Isolated Systems in Amazon 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) 26

Isolated Systems Power Matrix and Emissions Source: Plan of Services for Isolated Systems Horizon 2024 - Cycle 2019 (EPE, 2019) 94% of the energy High Emissions Intensity generated through 0,637 tCO2-eq/MWh Diesel burning 27

Isolated Systems Logistics Source: Eletrobras collection Source: Eletrobras collection The roads to access remote regions are not available or are precarious 28

Isolated Systems Logistics 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 • Source: Norte Energia collection 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 29

Isolated Systems Energy Cost Because of the low income profile Logistics of the Amazon population, Diesel Price the high cost is subsidized by consumers connected to the NIS O&M The 2020 subsidy budget is USD 1.5 Billion High Cost 30

Contradiction 94% Fossil Fuel 0.6 Isolated t CO2-eq/MWh Systems 0.42 USD/kWh 0.9 MWh/person year 0.7 inhabitant/km² National Interconnected System Sources: IBGE, ONS, ANEEL, and EPE 31

Federal Program Light For All Light for All Program universalized access to electricity in Brazil, except for 1% of the population concentrated in Amazon 3.6 million connections 16.8 million people benefited USD 5.5 billion invested Source: Brazilian Institute of Geography and Statistics (IBGE) 32

New Federal Program More Light for Amazon More Light For Amazon Light For All Challenge Achievement Substitute Provide Renewable Diesel for Energy Access to Renewable 70,000 families Energy Remote Regions Remote Regions Universalization in Amazon in Amazon with in Brazil through without electricity Grid integration electricity GRID INTEGRATION LOGIC ISOLATED SYSTEM LOGIC 33

Future of the Power Sector Source: World Economic Forum 34

Telecommunications in Africa / Energy in Amazon Going directly to the Future! 35

Eletrobras Initiatives

Existing Initiatives in Amazon Region FLOATING PHOTOVOLTAIC AT SOBRADINHO HPP LAKE GREEN FUEL Source: Eletrobras collection TECHNOLOGICAL PARTNERSHIPS Artificial Intelligence Modular Photovoltaic Generation and Storage Solution 37

Proposed Solution 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 on 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. 38