1. Power Transmission and Distribution in Brazil
Seminar on Japanese Technologies on Urban Railway
and Power Transmission and Distribution
Ministry of Economy, Trade and Industry - Japan
Power Transmission and Distribution in Brazil
Carlos Eduardo Cabral Carvalho
Advisor to the Board of Directors Brazilian Electricity Regulatory Agency - ANEEL
São Paulo, 19/3/2015

2. Agenda ANEEL The Brazillian Interconected System – SIN Generation
Transmission
Distribution
Smart Grid – Regulatory aspects
Distributed Generarion – Regulatory aspects
Technology - Reserch & Development

3. Electric Sector Institutional Framework
National Congress
Policies and
directives
National Council for Policies on Energy (Conselho Nacional de Política Energética - CNPE)
Planning and assurance of
Balance between supply
and demand
Ministry of Mines and Energy (Ministério de Minas e Energia - MME)
Studies and Planning
Energy Planning Company (Empresa de Pesquisa Energética - EPE)
Regulation and
oversight
Brazilian Electric Power Agency (Agência Nacional de Energia Elétrica - ANEEL)
Supervision, control and
operation of the Interconnected
Power Grid
National System Operator (Operador Nacional do Sistema Elétrico - ONS)
Scenario Assessment and
Preventive Actions Regarding
Supply Availability
Monitoring Committee of the Electric Sector (Comitê de Monitoramento do Setor Elétrico - CMSE)
Financial Clearing
Clearance Chamber for Energy Transactions (Câmara de Comercialização de Energia Elétrica - CCEE)

4. ANEEL’s Organizational Structure
Board of Directors
Secretary-General
Advisors
Internal Audit
Legal Advice
Chief of Cabinet
Superintendencies of organizational processes
Regulatory
Inspection
Mediation
Auctions/Grants
Following the legal framework and specific policies
Guide and advise – enforce penalties when unavoidable
Dispute settlement
Energy auctions, auctions for new enterprises (G/T), and authorizations
Two hierarchical levels - Horizontal Structure - Process management
Staff: 731 people; Third Party Contracts: 376 (IT, secretary, etc.) = Total: people

5. Brazilian Electricity Regulatory Agency
Regulates and oversees the entire Brazilian electric power sector
ANEEL’s Mission
To provide favorable conditions so the electricity market develops with balance between the utilities and benefiting society
Consumers/Society
Reasonable tariffs
Quality of service
Guarantee of rights
Service Providers
Government
Adequate remuneration
Contracts honored
Predictable and clear rules
Strategic interests
Development Model
Universalization

6. ANEEL’s main challenges
To support and enhance energy policies, to identify improvements and to fill gaps
Improve of the regulation model
To guarantee the consumers rights and take care of the compliance of the obligations and the rights of agents
Establish clear borders between the Agency, the Government and the Market
Enhance the participation of society, the transparency tools and reduce asymmetry of information
To strive for the reduction of charges and tariffs
Regulations supporting the insertion of new technologies: smart grid, solar power, mini and micro-generation

7. Brazilian Interconnected System
Generation
Facilities in operation
Type
Quant
Authorized Power (MW) %
UHE - Hydro
197
82.645
63,18
UTE - Biomass
485
12.051
9,21
UTE - Fossil and others
1.377
25.355
19,38
PCH - Small Hydro *
467
4.677
3,58
UTN - Nuclear 2
1.990
1,52
EOL - Wind
178
3.782
2,89
CGH - Very small Hydro **
288
0,22
UFV - Solar 21 10
0,008
UFV - Mini/Micro
143
0,002
Total
3.340
100,00%
* 1MW ≤ Power ≥ 30MW
** Power ≤ 1MW
BIG/ANEEL: August/2014
More than 75% of the electricity produced comes from renewables!

8. Renewable Generation in Brazil
WIND
HYDRO
BIOMASS (Sugar cane)
North: 9%
12,8 GW
26,4 TWh/year
NE: 52%
75 GW
144,3 TWh/y
North
Potential: MW
Remaning: % NE
Potential: MW
Remaning: 3-4 %
CW: 2%
3,1GW
5,4 TWh/y
SE / CW
Potential: MW
Remaning: 2-3 %
SE: 21%
29,7 GW
54,9 TWh/y
Atlas Eólico Nacional 2003 – CEPEL/Eletrobras
South: 16%
22,8GW
44,1 TWh/y S
Potential: MW
Remaning: 21 %
Atlas da Energia Elétrica, 2ª Ed, ANEEL (2005)
Estimated potential: 144 GW
Estimated potential: 260 GW

9. Renewable Generation in Brazil
SOLAR
POPULATION DISTRIBUTION
Brazilian territory has high potential of solar energy - annual average between 1200 and 2400 kWh / m² / year global irradiation. The current costs of this technology are relatively high but they are decreasing.

10. Brazilian Interconnected System
Transmission
107 Utilities, Km

11. Brazilian Interconnected System
Interligação Tucuruí - Macapá – Manaus
Lote A: LT Tucuruí – Xingu – Jurupari km /7/2013
Lote B: LT Oriximiná – Jurupari – Macapá km /9/2013
Lote C: LT Oriximiná – Silves- Lechuga km /7/2013

12. Brazilian Interconnected System
Interligação Manaus – Boa Vista 500 kV
Contrato de Concessão no 3/2012, de 25/1/12
Prazo de construção: 36 meses (entrada em 25/1/15)
Investimento estimado: R$ 1,061 bilhões
Receita Anual Permitida (RAP) = R$ 121,128 milhões

13. Brazilian Interconnected System
Transmission
Public auctions in which builders-to-be bid down on the “allowed annual income – RAP” cap pre-fixed by the government which covers for the implementation and operation of the transmission system - 30 year contract.
Regulation 399/2009 – Quality of the transmission service.
Regulation by incentive: economic signal to maximize service availability.

14. Brazilian Interconnected System
Distribution
63 Distribution Utilities
Tariffs differentiated by concession areas
Distribution utilities of all sizes
1.200 a MWh
2.800 a Consumers
Regional diversity
Consumers

15. Brazilian Interconnected System
Competition and Regulation
Generation and Transmission
GENERATION (Competition): Public auctions in which sellers-to-be bid down from a price cap pre-fixed by the government.
Energy Research and Planning Company (EPE) – plans the expansion of generation and transmission systems.
Distribution companies declare the energy needed for supplying their market 3 and 5 years in advance.
Ministry of Mines and Energy (MME) defines guidelines for auctions.
ANEEL undertakes transmission and generation auctions. G
TRANSMISSION (Competition for concessions): Public auctions in which builders-to-be bid down on the “allowed annual income – RAP” cap pre-fixed by the government which covers for the implementation and operation of the system. T
DISTRIBUTION (Natural Monopoly): Tariffs determined by ANEEL on an yearly basis plus a periodic four-year general review. DISCOS declare energy needs every year and ANEEL carries out Public Auctions. D
RETAIL (Competition): Free market transactions only for qualified consumers as determined by law.
All DISCOs sign individual supply contracts with each selling GENCO R
Distribution companies are allowed to buy energy from DG up to 10% of their own load.

16. Smart Grid – “A gigantic universe waiting to be explored in Brazil”

17. Smart grid deployment in Brazil
Make traditional electricity grids:
more efficient and reliable
more adaptable to the consumer’s profile (Electricity can be used in a more rational, sustainable way)
Clear regulatory guidelines
Encourage consumers to be more interactive as regards their consumption

18. Smart grid deployment in Brazil
Smart grid is much more than just the meter
The entire structure serves to process and transfer data
Without a communications system the data gathered by the meter serves no purpose
The goal is:
Get the regulations drawn up now so that industry can start manufacturing
Once they’ve been manufactured, they’ll have to be certified by the metrology bodies, in this case by INMETRO
Then they can be put on the market

19. Smart grid deployment in Brazil
NOW
FUTURE
Meter (kWh)
The meter reader checks the consumption
The consumer pays the bill
Meter (kWh) and complementary functions
Communication
Information available - consumer and distribution company
Installation of smart metering in consumers connected in low voltage level (220 V – 127 V)
78 millions consumer Units
Strike the right balance between modernity of service and reasonable tariffs
Challenge 19

20. Potential impacts on the Grid
Huge impact
GENERATION - Small impact
More information about the service and the consumption profile
Consumption management
Incentive to the rational use
CONSUMERS
DISTRIBUTION
Big impact
TRANSMISSION
Tool for losses reduction
Operating costs reduction
Micro and mini distributed generation
Real-time net information
Moderated impact

21. Smart grid in Brazil – Key Drivers
World
Reduction
of CO2
Reduction of energy consumption
Reduction of Opex (economy efficiency)
Brazil
Grids more efficient and reliable
Reduce energy losses
Reduce peak load (time-of-use tariffs)
We have to develop our own solution!!!
Considerable diversity amongst distribution companies
Balance between technological advance and affordable tariffs
Aspects to be considered by ANEEL

22. Smart grid in Brazil – Key Drivers
Energy consumption
Source: Key World Energy Statistics, 2014 – International Energy Agency
OECD - Organization for Economic Co-operation and Development

23. Key Drivers – Energy Quality
DEC & FEC – BRAZIL
Compensation for violation of the quality indicators
Year
2010
2011
2012
2013
2014
Total
,60
,46
,42
,25
,12

24. 32% 21% 20% 9% 18% 5% 20% 10% Key Drivers – Energy Losses 12% 3%
Distribution losses
Non-technical losses 5%
20%
10%
12%
Non technical losses – estimated costs (ref. april/2010)
Energy: R$ 2,2 Billion per year.
T & D: R$ 3,8 Billion per year.
Total without taxes: R$ 6,0 Billion per year.
Total with taxes: R$ 8,1 Billion per year. 3%

25. Each regulation is an additional step towards smarter grids
Regulation related to Smartgrid
Each regulation is an additional step towards smarter grids
Res. 610/14
Prepayment
Res. 502/12
Electronic meters
Micro and Mini distributed generation
Res. 482/12
Res. 464/12
Time of use tariff – Low Voltage
Res. 375/09
Power Line Communication – PLC
Res. 345/08
Geographical Information System

26. Regulator’s perspective
Goal to be achieved
(not the technology to be used)
Each regulation is an additional step towards smarter grids

27. Electronic Meters - Regulation 502/2012
2 types of meters
Time-of-use tariff
Consumer choice
Specific comercial criteria
Basic functions
Ability of applying 4 tariff periods per day
Identify the period
Complementary functions
Consumer interested in complementary functions
Consumer pays for the meter
Functions
Information: Voltage, current, period of the day
Quality
Voltage Quality
Output for data

28. Exemplo de relatividade entre postos da Tarifa Branca
Time-of-use tariff – Low voltage
To stimulate the reduction of peak load
Tariff (R$/MWh): Peak, Intermediate e Off-Peak
Peak/Off-Peak = 5 and Intermediate/Off-Peak = 3
Exemplo de relatividade entre postos da Tarifa Branca

29. Small scale DG (up to 1 MW)
DG ≤1MW
Biomass
Hydro
CHP
Regulation ANEEL 482/2012.
Consumer
Procedures
Request the access
Install the equipments
Request inspection
Regularize tecnical aspects
Operation
Distribution Company
Issue access authorization
Inspection
Inspection Report
Approve the access point
Connection
30 days*
30 days
15 days
7 days
82 days
60 days for mini GD

30. Small scale DG (up to 1 MW) – Net metering
Consumption > Generation
Consumption < Generation
Consumption
Generation
Consumption
Generation
Consumer is billed by the difference between the consumed electricity and the generated electricity
Electricity generated in a TOU rate X by a unit A of the consumer
(expiration date: 36 months)
(1st) Unit A
(1st) TOU rate X
(2nd) Different TOU rate (ratio between tariffs)
(2nd) Different unit of the same consumer

31. Small scale DG (up to 1 MW)

32. Perspectives for small scale DG (up to 1 MW)
DG is getting cheaper
Electricity tariffs are increasing
Consistent regulatory framework
Source: ABRADEE, 2012

33. Smart grid and DG in Brazil
Smart grids and DG
There is no doubt that smart grids will be implemented in Brazil
It is a natural process of technological evolution
The question is not whether we need them, but how they will be implemented
The way to operate the network has already changed
Challenges
Deal with the new reality
Engage the consumer - show that the technology is for their benefit
Ensure the implementation in a way to benefit the entire society

34. Research and Development

35. Brazilian’s Law for R&D Program in the Electric Energy Sector
Federal Law nº 9,991 - July 24, 2000
Objective :
Stimulate innovations to face the technological and market challenges of the Brazilian electric sector
Establishes minimum percentages from Net Operating Income (NOI) for investing in R&D projects

36. R&D Program: Available Resources 2014
1% NOI G
0.40% FNDCT
US$ 157Mi
TOTAL
R&D
R&D
1% NOI T
0.40% ANEEL
US$ 392,5Mi
US$ 157Mi
1% NOI
Net Operating Income
0,5% NOI D
0.20% MME
US$ 78,5Mi
NOI= US$ 58,43 Bi
1% NOI= US$ 58,43 Mi
US$ 191,9Mi
Noi(D) = US$ 38,34 Bi
=> (65,6% NOI) EE
0,5% NOI D
TOTAL EE
ANEEL
US$ 191,9Mi
*1 US$ = R$ 2,8649

37. R&D Program on Smart Grid
There are about 270 projects in 10 subjects of Smart Grids in ANEEL’s R&D Program, with a total of US$ 380,5Mi in planned investments from 2008 to 2016.
The four main subtopics of the projects are:
Distribution automation, including oversight of electricity distribution networks;
Distributed generation, micro generation and micro grids;
Telecommunications for Smart Grid; and
Intelligent electricity metering systems, including new models and tests of new features of electronic meters;

38. R&D Program on Transmission
There are about 191 projects on Transmission in ANEEL’s R&D Program, with a total of US$ 254,7Mi in planned investments from 2008 to 2016.
The four main subtopics of the projects are:
Electric Power System Planning;
Operation of Electricity System;
Supervision, Control and Protection of Power Systems; and
Quality and Reliability of Electricity Services.

39. SGAN – Quadra 603 – Módulos “I” e “J”
Thank You!
SGAN – Quadra 603 – Módulos “I” e “J”
CEP: /Brasília – DF
Tel. 55 (61)