R&D PROGRAM June/2011

2 TOPICS General Information Neoenergia R&D Legislation

3 Regulation: Federal law 9.991/2000 states that Generation, Transmisson and Distribution utilities should invest a minimun % of net operating revenue in R&D. Aneel establishes guidelines and instructions that regulate the elaboration and approval of R&D projects. Main objective: encouraging the constant search for innovations and to confront the technological challenges of the electrical sector. R&D for Electric Utilities in Brazil

4 RESOURCES FOR R&D % of Net Operating Revenue GenerationTransmissionDistribution 0.4% 0.2% Brazilian electric companies should invest ~R$ 350 milion/year in R&D projects

5 INSTITUCIONAL ARRANGEMENT ANEEL Consultants Utilities ANEEL Universities R&D Centers Development of Project Proposal Evaluation of Proposals Monitoring Supervision Manufacturers

6 R&D ANEEL GUIDELINE (2008) Criteria for development and appraisal of proposals The participation of foreign researchers should be through direct contracting by the national executing entities, being required to carry out the project activities in Brazil

7 PRIORITY ISSUES FOR R&D Energy eficiency Alternative energy Power quality and reliability Metering, billing, colect and comercial losses Social and Environment (Sustentability) Planning and operation of electric systems Supervision, protection and control Safety of people and facilities

8 NEOENERGIA PROGRAM – KEY FIGURES Beginning of Program: projects approved by ANEEL 182 completed projects; 35 ongoing projects R$ 88,30 millions invested 54 participating entities Coelba Annual spending: R$ 7,5 millions Celpe Annual spending: R$ 5,1 millions Cosern Annual spending: R$ 2,0 millions Neoenergia annual spending (G,T,D): R$ 18 millions

9 MAIN PROJECTS – EXAMPLES Fault Locator Construction and pilot implementation of a low cost prototype automatic fault locator for distribution (13,8 kV). Fast Magnetic Suppressor of Voltage Variation - SMRFT Development, prototype construction and application, in the utilitys electrical system at 13,8kV, of equipment used to minimize SDVVs (short duration voltage variations) and voltage stabilization in steady state. Supervisory System of Operation Control of Electrical System in Isolated Places Development of a control supervisory system for electrical system operation in isolated places, based on a pilot model of a hybrid energy matrix implementation, with pilot application on the island of Fernando de Noronha.

10 MAIN PROJECTS – EXAMPLES Robotic Camera in Hot Stick for the Inspection of Networks and High Voltage Prototype of an inspection system for networks of medium and high voltage energized using robotic video camera to stick. Insertion of New Fluid in Circuit Breakers Economic mixture of vegetable oil and mineral in circuit breakers and technically with efficiency gains

11 Equipment for load protection against sag voltage - Prototype MAIN PROJECTS – EXAMPLES

12 System to Record and Read Equipment Information Using RFID Tags and PDA MAIN PROJECTS – EXAMPLES

13 Sustainable Crossarm Using Planted Eucalyptus Forests MAIN PROJECTS – EXAMPLES

14 Tools for Replacement of Conductors with Hot Line MAIN PROJECTS – EXAMPLES

15 Thanks!