Apresentação realizada por Roberto Castro, conselheiro da CCEE, em 22 de maio de 2018

1. Overview of the Brazilian
electricity sector
May 22, 2018
Roberto Castro
Member of the Administration Board, CCEE

2. CNPE (National Council for Energy Policy)
MME (Ministry of Mines and Energy)
EPE (Energy Research Office)
CMSE (Power Sector Surveillance Committee)
ANEEL (National Regulatory Agency)
ONS (National Grid Operator)
Energy policies definition
Monitoring of the power system, in order to ensure adequate supply
Planning of generation and transmission expansion
CCEE (Market Operator)
Presidency of the Republic
National Congress
Government
Sector institutions
Players
Agents Consumers
Created in 1999, CCEE is a
nonprofit private legal entity,
regulated and supervised by
ANEEL (regulatory agency)
Governance of the Brazilian Electricity Industry
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3. Associated members
(as in April 2018)
7,062
Generator
Trader
Free Consumer
Self Power
Producer
67
867
229
46
Special Consumer*
4,529
Distributor
46
of the members
76%
* Demand equal or above 0.5 MW (small consumers)
Independent Power
Producer1,278
CCEE Associated Members
3

4. Brazilian electricity sector
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5. INS (SIN) x Europe
Consumption
Brazilian Market
Main Figures
Area 8.5 millions Km2
Population 207 millions
GDP 2017 US$ 2.2 trillions
GDP 2017 per capita US$ 9,683
Language Portuguese
Installed Capacity
64%
26%
8%
1%
Hydro
Thermal
Wind
PV
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6. Market operator
System operator
Brazilian Market
Centralized Spot
price calculation and
contractual position
settlement
Centralized dispatch of
power plants and
Transmission System
Centralized System and Market Operation
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7. Current Brazilian Market Design - Main Figures
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8. Natural Gas and Electric Sector
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9. Installed Capacity (total)
Renewables represent approx. 80% of Brazilian electricity matrix
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10. Generation – 67,017 MWavg (mar/18)
88% Renewable
Hydro
54,604 MWavg
Wind
2,950
Thermal
9,218
81.5%
4.5%
13.7%
Solar PV
245.7
0.3%
MWavg
MWavg
MWavg
Natural gas: 4,032 MWavg
6%
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11. Hydro
Biomass
Wind
Solar PV
GW
Source: MME, EPE and Aneel
Renewables Energy (Installed Capacity)
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12. Day 1
Day 2
Day 3
Day 4
Day 5
Day 6
Day 7
Day 8
Day 9
Day 10
Day 11
Day 12
Day 13
Day 14
Day 15
Day 16
Day 17
Day 18
Day 19
Day 20
Day 21
Day 22
Day 23
Day 24
Day 25
Day 26
Day 27
Day 28
Day 29
Day 30
Day 31
Averagedailygenerationinthemonth(Mwavg)-SIN
0
1000
2000
3000
4000
5000
6000
7000
8000
Windpower-intermittence
Source:ONS
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13. Renewable regions x thermal plants
The role of back-up generation, especially during extensive periods
of low rainfall
Economic complementarity: water is cheaper than gas and hydro-
termal complementarity is economically valuable for the consumer
– gas costs incurred when plants are dispatched
The “dispatchability” atribute of termal plants is valuable when
building resources with high variability in energy production
Natural gas plants will be preferred (resource availability, emissions)
Brazil is integrating 18,000 MW of Wind until 2019, same is
happening in other countries
Brazil is integrating large hydro plants with no storage
capacity (for environmental reasons, only run of river plants
built since 1999)
Source: EPE
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14. Challenges
Dispatch of thermals has to stay in the short term
Compatibility of the rules for the auctions of thermals with the gas sector
To enable natural gas thermal – spot market
The thermoelectric inflexibility limitation (currently at 50%)
Natural gas supply
Ballast verification
Impact of the expiry of gas supply contracts in the supply of
thermal
To enable flexible secondary gas markets
Inclusion of cogeneration and distributed generation to natural gas
in integrated planning
Source: FGV
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15. Risk allocation
The expansion has been limited and based on
vertical models
Financial penalty for lack of gas
Ballast verification
LNG storage
Availability contracting
indexes of readjustments
Early despatch for LNG
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16. Regionalized auctions
Complementary projects
Regional planning
Generation near demand
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17. 6 Liquefied natural gas plants
were auctioned winners
Cacimbaes - ES (2013)
Escolha - ES (2013)
José de Alencar - CE (2011)
Linhares - ES (2011)
Maranhão IV - ES (2013)
Maranhão V- ES (2013)
1,63GW
installed
capacity
Liquefied Natural Gas (LNG)
Expansion – Peak load power
Open-cycle natural gas thermoelectric plants
Increase in natural gas demand of 84.2 million m³/day (2020 to 2026)
6th and 7th new energy auctions
(september, 2008)
Auctions
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18. Prices by technology (auctions)
(USD/MWh)
*1 USD = 3.3138995 BRL / Currency in Apr 03, 2018
Source: Central Bank of BrazilLNG = US$ 74
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19. Conclusions
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20. Associated members
(as in April 2018)
7,062
Generator
Trader
Free Consumer
Self Power
Producer
67
867
229
46
Special Consumer*
4,529
Distributor
46
of the members
76%
* Demand equal or above 0.5 MW (small consumers)
Independent Power
Producer1,278
CCEE Associated Members
3

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