Centro de Pesquisas de Energia Elétrica - CEPEL Autor/apresentador Área Título do trabalho...

Centro de Pesquisas de Energia Elétrica - CEPEL


Autor/apresentador

Área

Título do trabalho

Brazil´s Brazil´s

Country ReportCountry Report

26th IEAHYDRO Exco 26th IEAHYDRO Exco

MeetingMeeting

Prague, Czech RepublicPrague, Czech Republic

20-21 October 201120-21 October 2011

Albert C. G. Melo

Director-General


Sustainability

"Sustainable development is development that "Sustainable development is development that

meets the needs of the present without meets the needs of the present without

compromising the ability of future generations to compromising the ability of future generations to

meet their own needs.”meet their own needs.” World Commission on Environment and

Development (WCED). Our common future. Oxford: Oxford University Press, 1987

p. 43.

SocialSustainability

EnvironmentalSustainability

Economic Sustainability

Sustainable Development - Triple-botton-line1

Corporate Governance

1John Elkington, 1998. Cannibals with forks: The triple bottom line of 21st century business


Sustainable Developmentof Hydropower

Socialimpacts

Cost-effective Energy

Production

Environmentalimpacts

Multipleuses ofWater

Find a balance


Sustainability

"Sustainable development is development that "Sustainable development is development that

meets the needs of the present without meets the needs of the present without

compromising the ability of future generations to compromising the ability of future generations to

meet their own needs.”meet their own needs.” World Commission on Environment and

Development (WCED). Our common future. Oxford: Oxford University Press, 1987

p. 43.

SocialSustainability

EnvironmentalSustainability

Economic Sustainability

Sustainable Development - Triple-botton-line1

Corporate Governance

1John Elkington, 1998. Cannibals with forks: The triple bottom line of 21st century business

Quadruple-Bottom-Line? (Policy Framework)


Stages

• Options assessment

• Site selection

• Project design & implementation

• Operation

Decision-Making Process

Policy Framework:

sustainability and use of water

• PPAs Schemes


Stages

• Options assessment

• Site selection

• Project design & implementation

• Operation

Needs

Do Planning

Social & Environmental considerations

Synergies between hydropower and river basin water resources

Hydrological diversity among regions

E.g., Public Auctions

Decision-Making Process

Policy Framework:


• PPAs Schemes


(planning activities adapted to each country circumstances)

Policy Framework:


1- option assessment: requires planning activities ranging from long-term expansion planning to short-term operational planning.

The study horizons vary from 20-30 years ahead (long-term), 5-10 years ahead (mid-term) up to day ahead operational programming, involving different degrees of detail in system representation.

Example:


Policy Framework:



Policy Framework:


2- site selection: formulation of alternatives for the partition of the total water head of a river basin, carried out in the inventory studies, considering sustainability criteria.

In the hydroelectric inventory the decision is taken not only for a single project but for the whole set of projects that can be developed in a river basin.

Development of methodologies that provide clear direction on how to minimize negative social and environmental impacts while maximizing the positive ones and also capturing synergies between hydropower development and the river basin water resources.

Government to take responsibility for a broader

assessment of sustainability ?

Government is the natural carrier, not the

entrepreneurs ?


Policy Framework:


3- project design and implementation: (starts when the inventory studies are concluded)

i. feasibility studies which should comprise Environmental Impact Assessment (EIA) reports which should also address social issues and must include water use rights.

ii. basic project, which detailed studies also include the elaboration of the Environmental Basic Project report.

iii. executive project phase all necessary measures related to the plant, including the implementation of socio-environmental programs are decided in order to get license for starting the filling of the reservoir for the beginning of the operation.


Policy Framework:


4 - integrated operation: coordinated operation with upstream and downstream hydropower plants in the same river basin, operation of the other power plants in the interconnected electrical power system and other water uses in the river basin.

Provides gains in energyproduction by taking into account hydrological synergies among river basins


Example:

Policy Framework:


4 - integrated operation: coordinated operation with upstream and downstream hydropower plants in the same river basin, operation of the other power plants in the interconnected electrical power system and other water uses in the river basin.

Provides gains in energyproduction by taking into account hydrological synergies among river basins


Policy Framework:


5 - PPAs Schemes – Example of the Brazilian Public Auction System

State-owned and private companies operate side-by-side

Electricity Generation

Competition in the Market

15

Market Market SeparationSeparation

Transmission and Distribution

Competition by the Market

Centralized Dispatch optimized by the National Power System Operator

CCEE: Financial and Energy Accounting

Electricity Market


Policy Framework:


5 - PPAs Schemes – Example of the Brazilian Public Auction System16

RegulatedMarket (ACR)Procurement Procurement

Auctions for the Auctions for the lowest energy pricelowest energy price

Free Market ACL

DDDD

CLCLCLCL CCCC

D = Distributors/ Eligible ConsumersCL = Free Consumers (above3 MW)C = Energy Traders

Competition

16

Freely Negotiated Prices

Prices set by Procurement Auctions

Generation Capacity Expansion

15 to 30-year PPA


Brazilian Framework for Planning Sustainable Hydropower Development

BRAZILIAN NATIONAL POWER SYSTEM EXPANSION PLANNING AND HYDROPOWER PLANNING

LONG TERM PLANNING

Horizon –30 yearsUpdates – 4 years

Hydropower planning

OperationExecutive

ProjectConstruction

Basic Project

Feasibility Studies

HydropowerInventoryStudies

AUCTION

TEN-YEAR EXPANSION

PLANAnnual Updates

EXPANSION MONITORINGHorizon – 5 YearsMonthly Updates

Recognition

NATIONAL ENERGY POLICY

CNPE

Operating Env. License

Installation Env. License

Reserve Declaration of Water Availability

Preliminary Env. License


Policy Framework:


Brazilian Auction Overview:

1) For Power Distributors It socializes the gains of trade ensuring that all distributors may face exactly the same hiring costs per unit of energy, regardless the region of operation or production scale.

Main Advantages

2) For Power Generators It reduces the risk of default since they sign a power purchase agreement with all distribution companies; It represents an opportunity of selling their energy by long-term future contracts, even before the construction of the power plant, thus reducing risks, uncertainties and costs of electricity generation.


Policy Framework:


Brazilian Auction Overview:

Due to the large amounts of money involved in the deployment phase, and the usual long time needed for its construction, the achievement of funding for hydro generation may be a difficult task.

In Brazil, BNDES has been the leading provider of long-term financing for infrastructure investments. For example, from January 2003 to June 2008, 142 power generation projects were supported by the bank, totaling about R$ 21.3 billion in financing, of which R$ 13.6 billion went to hydroelectric projects.

Recently, the BNDES provided the necessary financial resources for the construction of Belo Monte hydro plant, with an installed capacity of 11,233.1 MW, which involved a total investment estimated at more than US$10 billion.

The Role of BNDES Bank


Policy Framework:


Developing hydropower in a sustainable way enhance

energy security, environmental sustainability and promote social and economical

development, specially for local communitieswhile offering important opportunities

for poverty alleviation and access to electricity


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