1. “Brazil’s Moment in the sun” Energy front – a key part of its economy Jerson Kelman – CEO, Light S/A

2. Brazilian energy source is renewable 45,9 12,9 6,7 54,1 87,1 93,3 0%10%20%30%40%50%60%70%80%90%100% Brazil (2007) Worldwide (2006) OCDE Countries (2007) Renewable Non-renewable

3. Installed capacity: 104 GW 74% is hydro Peak demand: 64 GW (comparable to England or Italy) Average production: 51GW X 8760 h/y = 447 TWh/y 90% is hydro Brazil power sector at glance (2008)

4. The transmission system 4 000 km Europe 4 000 km Isolated System Interconnected System

5. Per capita consumption of electricity

6. Centralized dispatch In order to take advantage of hydrological diversity, energy is transported through long distances. Power plants in the same river basin are own by different companies.

7. Spot price is low most of the time...

8. Generation Free Consummers Captive Consummers Distribution Transmition Distribution tariff TUST TUSD TUST TUST PPA (energy) Free Consummers TUSD - TUSD - Distribution network charge + taxes TUST – Distribution network charge + taxes Distribution Tariff = Energy + TUSD PPA – Power Purchase Agreement Long term power purchase agreements (PPAs)

9. Results of recent auctions of energy (competition for the market, rather than in the market) Sales: ~ 150 TWh/year 37% Hydro e 67% Thermal (natural gas, oil and coal) Total value: ~ US$ 110 billion

10. Did Brazil run out of sites to build new hydro plants? USA Congo Indonesia Peru Russia China Colombia India BRAZIL Canada Italy Sweden Norway Japan Germany France 100 0020406080 Source: EPE

11. Hydropower plants in the Amazon river basin What would be the alternatives?

12. Distance of potential hydro plant sites to the large cities

13. Rio de Janeiro: pacification & formal economy