TRENDS TO HYDROPOWER DEPLOYMENT
               FROM GLOBAL TO REGIONAL

                                     November 12, 2012
Regional                               Rio de Janeiro
Leadership
Forum
advancing sustainable hydropower
in latin america and the caribbean
                                                         José Carlos de Miranda Farias
                                                            Energy Research Agency - EPE


                                                                                      1
ELECTRICITY GENERATION BY FUEL
                                                BRAZIL X WORLD

                 BRAZIL 2010                                                               WORLD 2008
                Renewables = 87.2%                                                        Renewables = 18.7%

             Hydro
             81.2%
                                                                                   Nuclear                              Hydro
                                                                                   13.5%                                15.9%
                                                                                                                                       Other (**)
                                                                                                                                         2.8%
                                                                 Gas
                                                                21.3%




                                                     Biomass (*)         Oil
                                                                        5.5%                                                      Coal/peat
     Wind                                               5.6%                                                                       41.0%
     0.4%
                            Gas          Oil Coal/peat
              Nuclear                          1.3%
                           5.8%         3.1%
               2.6%                                          ** Other includes geothermal, solar, wind, combustible renewables and waste, and heat.

* Mainly generated from the co-generation with sugar cane

                                                                                             Sources: EPE [BEN 2011 - Preliminary Results]
                                                                                              and IEA [Key World Energy Statistics - 2010]

                                                                                                                                               2
GHG EMISSIONS
                2005 ELECTRIC SECTOR EMISSIONS (TCO -EQ)                               2


                     0                    500              1000        1500   2000   2500         3000

  United States                                                                               2,733
           China                                                                            2,668
          Rússia                                            934
            India                                    691
           Japan                               509
       Germany                           366
       Australia                   243
United Kingdom                     237
    South Korea                   220
    South Africa                  211
         Canada                  190
         Mexico                 180
    Saudi Arabia                172
         Poland                 172
             Italy             165
         Taiwan                154
        Ukraine               136
           Spain              129
      Indonesia
                     ...      125                                 Brazil’s
                                                                  ranking
           Brazil        26
                                                                    49º              Source: WRI/CAIT


                                                                                                         3
BRAZILIAN POWER SYSTEM: GENERATION
                                     (INTERCONNECTED TRANSMISSION SYSTEM)

                                                                      Hydropower plants in Brazil




                                                         > 6,000 MW

                                                         > 2,000 MW

                                                         > 1,000 MW

                                                         < 1,000 MW
Source: EPE (PDE 2020) (Dec, 2010)




                                                                                                    4
Transmission Lines
                2012
More than 100.000 km




                       5
BRAZILIAN HYDRO POTENTIAL
                                                                China, 13%
                          Others, 44%
Estimated Brazilian
  hydro potential
     260 GW
                                                                     Russia, 12%
 1.200 TWh/año


            36%
                                                                      Brazil, 10%




     in operation or                                             Canada, 7%
     under construction
      to be developed      USA, 4%                  Congo, 5%
                                        Índia, 5%




                                                                                    6
DEVELOPED COUNTRIES HAVE ALREADY USED
    MOST OF THEIR HYDRO POTENTIAL
                  Congo 1
              Indonésia      4
                                                                           % of technical potential
                    Peru         6

                  Rússia             11

               Colombia                   18

                   India                       21

                   China                             34

                   Brasil                            34

                 Canadá                                   37

                    Itália                                     45

                  Suécia                                              55

        Estados Unidos                                                     60

                Noruega                                                    61

                   Japão                                                        64

               Alemanha                                                                      83

                  França                                                                                   100


    Notes:                   0               20             40              60                80             100
    1. Based on data from World Energy Council, considering plants in operation and under constructions, at the endd of 1999.
    2. In the case of Brazil, based on data from EPE and Atlas de Energia Elétrica do Brasil, published by ANEEL. In the case of
    China, based on data from Worldwatch Institute.
    3. Selected countries have 2/3 of developed world hydro potential.
                                                                                                                                   7
MOST OF BRAZILIAN HYDRO POTENTIAL TO BE
   DEVELOPED IS IN THE AMAZON BASIN




    Hydro potential to be developed
    Amazon basin, 59%
    Total hydro potential
    Amazon basin, 42%
                                          Amazon biome area as
                                      percentage of Brazilian territory




                                                          41%



                                                                          8
BRAZILIAN AMAZON OCCUPATION
 (ENVIRONMENTAL PROTECTED AREAS AND INDIGENOUS LANDS)




   Existing           Indigenous
Power Plants             Areas
 (0,2%) and             24,0%
   Planned
Power Plants
    (0,1%)
     0,3%


  Conservation
     Units
     27,0%                                                     Other (*)
                                                                48,7%
    (*) Disturbed areas, agriculture and livestock, water masses
    and other areas not protected



                                                                           9
Belo Monte
                        Reservoir
Capacity = 11,233 MW
 Reservoir = 516 km2
                                                         BARRAGEM, VERTEDO
                                                         URO E CASA DE FORÇA
                                                           COMPLEMENTAR                     ALTAMIRA




                                                                          CANAIS DE
                                                                          DERIVAÇÃO




                       ÁREA INDÍGENA PAQUIÇAMBA
                                            BARRAGEM
                                            BELA VISTA
                                                                                  USINA BELO MONTE




                            New Project
                            First Project


                                                                                                       10
BELO MONTE – REGIONAL DEVELOPMENT

                               Quite 60% of the area are occupied by pasture and are anthropized




Fuente: CCBM (julio de 2011)


                                                                                                   11
BELO MONTE – REGIONAL DEVELOPMENT




Fuente: Norte Energia
                                                       12
BELO MONTE – REGIONAL DEVELOPMENT
                                    SCHOOLS




Fonte: Norte Energia
                         Sala de clase en Vitória del Xingu antes y después de la reforma


                                                                                            13
BELO MONTE – REGIONAL DEVELOPMENT
                                  News Schools




Fonte: Norte Energia
Fonte: Norte Energia

                                                           14
BELO MONTE – REGIONAL DEVELOPMENT
                                 News Hospitals




Fonte: Norte Energia

                                                           15
BELO MONTE – REGIONAL DEVELOPMENT
                                     Sanitation




Fonte: Norte Energia
  Fonte: Norte Energia
                                                             16
Developing new hydro power generation with lesser environmental impact -
         Technique developed for use in the Amazon Basin Rivers


                                       Waterfalls in the chosen location




                                        Lesser deforestation an works impact




                                          Lesser deforestation and works impact




                                          Forest is recovered



    Source:
    ELETROBRAS
                                                                                  17
HYDROPOWER
                         THE 10-YEAR ENERGY PLAN
                32,634 MW

                      Contracted Expansion (24,064 MW)
     6.000
       6,000                                                               5,469
                      Expansion Planned (8,570 MW)
                                                                 4,893               4,997
     5.000
       5,000                                                                1,128
                                                       4,197
                                                                  1,012               1,330
     4.000
       4,000                                                                                             3,499
MW




     3.000
       3,000
                                    2,225                                                      2,212
                1,797     2,005                                             4,341
                                                        4,197     3,881
     2.000
       2,000
                                             1,340                                    3,667               3,499
                                                                                                1,601
                1,797     2,005     2,225
     1.000
       1,000
                                              1,340
                                                                                                611
         -
               2011     2012      2013      2014      2015      2016      2017      2018      2019      2020
                                                                                           Source: EPE [PDE 2020]


                                                                                                                    18
CONTRACTING POWER FROM NEW PLANTS
                            LAW 10.848/2002

Forward (3 and 5 years) PPA Auctions
      PPA with a term of 15 to 35 years



                                 Action in “Y-3”




  Auction in “Y-5”
                                                                   AHE Xingó – AL/SE




Y-5          Y-4              Y-3         Y-2      Y-1         Y
                                                         (start of supply)



                                                                                       19
PPA WITH ALL (DISCO) BUYERS IN THE
                                                   PROPORTION OF THEIR REQUEST.

                          Belém

                                     São Luís          Fortaleza
                                                                    Natal
                                       Teresina
                                                                       João Pessoa


                                                                       Recife

                                                                      Maceió
                                                                   Aracajú
                                                            Salvador
Cuiabá

                    Brasília
               Goiânia

                                       Belo
                                     Horizonte
Campo Grande
                                                      Vitória


                                                 Rio de Janeiro
                                  São Paulo

                          Curitiba                                                   AHE Xingó – AL/SE

                           Florianópolis



                   Porto Alegre




                                                                                                         20
Paulo Afonso – 1417 MW
   São Francisco River
 In Operation since 1955




PA I, II, III 1417 MW


                           21
Empresa de Pesquisa Energética - EPE
              Av. Rio Branco, 1 - 11º floor   Centro Rio de Janeiro RJ
CEP 20090-003   Tel.: +55 (21) 3512-3100       www.epe.gov.br miranda.farias@epe.gov.br




       Thank you for
                                                                                          22

Jose Miranda, EPE

  • 1.
    TRENDS TO HYDROPOWERDEPLOYMENT FROM GLOBAL TO REGIONAL November 12, 2012 Regional Rio de Janeiro Leadership Forum advancing sustainable hydropower in latin america and the caribbean José Carlos de Miranda Farias Energy Research Agency - EPE 1
  • 2.
    ELECTRICITY GENERATION BYFUEL BRAZIL X WORLD BRAZIL 2010 WORLD 2008 Renewables = 87.2% Renewables = 18.7% Hydro 81.2% Nuclear Hydro 13.5% 15.9% Other (**) 2.8% Gas 21.3% Biomass (*) Oil 5.5% Coal/peat Wind 5.6% 41.0% 0.4% Gas Oil Coal/peat Nuclear 1.3% 5.8% 3.1% 2.6% ** Other includes geothermal, solar, wind, combustible renewables and waste, and heat. * Mainly generated from the co-generation with sugar cane Sources: EPE [BEN 2011 - Preliminary Results] and IEA [Key World Energy Statistics - 2010] 2
  • 3.
    GHG EMISSIONS 2005 ELECTRIC SECTOR EMISSIONS (TCO -EQ) 2 0 500 1000 1500 2000 2500 3000 United States 2,733 China 2,668 Rússia 934 India 691 Japan 509 Germany 366 Australia 243 United Kingdom 237 South Korea 220 South Africa 211 Canada 190 Mexico 180 Saudi Arabia 172 Poland 172 Italy 165 Taiwan 154 Ukraine 136 Spain 129 Indonesia ... 125 Brazil’s ranking Brazil 26 49º Source: WRI/CAIT 3
  • 4.
    BRAZILIAN POWER SYSTEM:GENERATION (INTERCONNECTED TRANSMISSION SYSTEM) Hydropower plants in Brazil > 6,000 MW > 2,000 MW > 1,000 MW < 1,000 MW Source: EPE (PDE 2020) (Dec, 2010) 4
  • 5.
    Transmission Lines 2012 More than 100.000 km 5
  • 6.
    BRAZILIAN HYDRO POTENTIAL China, 13% Others, 44% Estimated Brazilian hydro potential 260 GW Russia, 12% 1.200 TWh/año 36% Brazil, 10% in operation or Canada, 7% under construction to be developed USA, 4% Congo, 5% Índia, 5% 6
  • 7.
    DEVELOPED COUNTRIES HAVEALREADY USED MOST OF THEIR HYDRO POTENTIAL Congo 1 Indonésia 4 % of technical potential Peru 6 Rússia 11 Colombia 18 India 21 China 34 Brasil 34 Canadá 37 Itália 45 Suécia 55 Estados Unidos 60 Noruega 61 Japão 64 Alemanha 83 França 100 Notes: 0 20 40 60 80 100 1. Based on data from World Energy Council, considering plants in operation and under constructions, at the endd of 1999. 2. In the case of Brazil, based on data from EPE and Atlas de Energia Elétrica do Brasil, published by ANEEL. In the case of China, based on data from Worldwatch Institute. 3. Selected countries have 2/3 of developed world hydro potential. 7
  • 8.
    MOST OF BRAZILIANHYDRO POTENTIAL TO BE DEVELOPED IS IN THE AMAZON BASIN Hydro potential to be developed Amazon basin, 59% Total hydro potential Amazon basin, 42% Amazon biome area as percentage of Brazilian territory 41% 8
  • 9.
    BRAZILIAN AMAZON OCCUPATION (ENVIRONMENTAL PROTECTED AREAS AND INDIGENOUS LANDS) Existing Indigenous Power Plants Areas (0,2%) and 24,0% Planned Power Plants (0,1%) 0,3% Conservation Units 27,0% Other (*) 48,7% (*) Disturbed areas, agriculture and livestock, water masses and other areas not protected 9
  • 10.
    Belo Monte Reservoir Capacity = 11,233 MW Reservoir = 516 km2 BARRAGEM, VERTEDO URO E CASA DE FORÇA COMPLEMENTAR ALTAMIRA CANAIS DE DERIVAÇÃO ÁREA INDÍGENA PAQUIÇAMBA BARRAGEM BELA VISTA USINA BELO MONTE New Project First Project 10
  • 11.
    BELO MONTE –REGIONAL DEVELOPMENT Quite 60% of the area are occupied by pasture and are anthropized Fuente: CCBM (julio de 2011) 11
  • 12.
    BELO MONTE –REGIONAL DEVELOPMENT Fuente: Norte Energia 12
  • 13.
    BELO MONTE –REGIONAL DEVELOPMENT SCHOOLS Fonte: Norte Energia Sala de clase en Vitória del Xingu antes y después de la reforma 13
  • 14.
    BELO MONTE –REGIONAL DEVELOPMENT News Schools Fonte: Norte Energia Fonte: Norte Energia 14
  • 15.
    BELO MONTE –REGIONAL DEVELOPMENT News Hospitals Fonte: Norte Energia 15
  • 16.
    BELO MONTE –REGIONAL DEVELOPMENT Sanitation Fonte: Norte Energia Fonte: Norte Energia 16
  • 17.
    Developing new hydropower generation with lesser environmental impact - Technique developed for use in the Amazon Basin Rivers Waterfalls in the chosen location Lesser deforestation an works impact Lesser deforestation and works impact Forest is recovered Source: ELETROBRAS 17
  • 18.
    HYDROPOWER THE 10-YEAR ENERGY PLAN 32,634 MW Contracted Expansion (24,064 MW) 6.000 6,000 5,469 Expansion Planned (8,570 MW) 4,893 4,997 5.000 5,000 1,128 4,197 1,012 1,330 4.000 4,000 3,499 MW 3.000 3,000 2,225 2,212 1,797 2,005 4,341 4,197 3,881 2.000 2,000 1,340 3,667 3,499 1,601 1,797 2,005 2,225 1.000 1,000 1,340 611 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: EPE [PDE 2020] 18
  • 19.
    CONTRACTING POWER FROMNEW PLANTS LAW 10.848/2002 Forward (3 and 5 years) PPA Auctions PPA with a term of 15 to 35 years Action in “Y-3” Auction in “Y-5” AHE Xingó – AL/SE Y-5 Y-4 Y-3 Y-2 Y-1 Y (start of supply) 19
  • 20.
    PPA WITH ALL(DISCO) BUYERS IN THE PROPORTION OF THEIR REQUEST. Belém São Luís Fortaleza Natal Teresina João Pessoa Recife Maceió Aracajú Salvador Cuiabá Brasília Goiânia Belo Horizonte Campo Grande Vitória Rio de Janeiro São Paulo Curitiba AHE Xingó – AL/SE Florianópolis Porto Alegre 20
  • 21.
    Paulo Afonso –1417 MW São Francisco River In Operation since 1955 PA I, II, III 1417 MW 21
  • 22.
    Empresa de PesquisaEnergética - EPE Av. Rio Branco, 1 - 11º floor Centro Rio de Janeiro RJ CEP 20090-003 Tel.: +55 (21) 3512-3100 www.epe.gov.br miranda.farias@epe.gov.br Thank you for 22