1. Energy Management in Brazil August 9th, 2011 Rio de Janeiro | RJ By: Pedro Paulo da Silva Filho | Grupo SAGE Desenvolvimento: SAGE US – Brazil Industrial Energy Efficiency Workshop 2011

2. Grupo SAGE | Energy Efficiency & Renewable Energy Grupo SAGE consists of the Brazilian companies SAGE Consultoria and SAGE Comercial. Created in 1997, is headquartered in Rio de Janeiro, with a branch in Brasília (Brazil) and a representative office in Quito (Ecuador), and has been actuating in Brazil and Latin America. Grupo SAGE has worked on energy management and consulting of Energy and Environmental initiatives, throughout Brazil and Latin America. We also design and implement energy and utilities management systems. Grupo SAGE

3. Grupo SAGE | Energy Efficiency & Renewable Energy Grupo SAGE - Operational Sectors -

4. Grupo SAGE | Energy Efficiency & Renewable Energy Grupo SAGE In more than 14 years of operation, Grupo SAGE has been worked in several countries, such as: BrazilCanadaMexicoArgentinaChileUruguayParaguay PeruBoliviaEcuadorColombiaNicaragua Costa Rica Panama El Salvador Dominican Republic GuyanaLesothoKenyaGhanaZambia

5. Grupo SAGE | Energy Efficiency & Renewable Energy Energy Management in Brazil

6. Grupo SAGE | Energy Efficiency & Renewable Energy Current situation PNE (National Energy Plan from 2010 to 2030) PNE (National Energy Plan from 2010 to 2030) Incorporates the Energy Efficiency theme Incorporates the Energy Efficiency theme Mention the future development of a PNEf – National Energy Efficiency Plan Mention the future development of a PNEf – National Energy Efficiency Plan Targets to reduce the national power demand by 10% until 2030 Targets to reduce the national power demand by 10% until 2030 Energy Management in Brazil - Context -

7. Grupo SAGE | Energy Efficiency & Renewable Energy Energy Management in Brazil - Current Practices - Companies have no internal meters, only utility meter for total plant Companies have no internal meters, only utility meter for total plant Lack of specific energy performance indicators Lack of specific energy performance indicators Lack of knowledge about energy management Lack of knowledge about energy management Lack of understanding that energy is not a fixed cost! Lack of understanding that energy is not a fixed cost!

8. Grupo SAGE | Energy Efficiency & Renewable Energy [ ENERGY BILL] The Great Mystery of Mankind

9. Grupo SAGE | Energy Efficiency & Renewable Energy Available Tools

10. Grupo SAGE | Energy Efficiency & Renewable Energy Using an Electricity Management System Using an Electricity Management System MGI (Monitoring, Targeting and Reporting) MGI (Monitoring, Targeting and Reporting) ISO 50.001 ISO 50.001 Energy Management in Brazil - Available Tools -

11. Grupo SAGE | Energy Efficiency & Renewable Energy Electricity Management System

12. Grupo SAGE | Energy Efficiency & Renewable Energy Energy Management in Brazil - Electricity & Utilities Metering System - Utility Meter Remote Management & Supervision Electricity & Utilities Meters Status + Control Cable Modem Ethernet Local / Remote Operation Web Server Remote Management & Supervising

13. Grupo SAGE | Energy Efficiency & Renewable Energy Energy Management in Brazil - Electricity & Utilities Metering System -

14. Grupo SAGE | Energy Efficiency & Renewable Energy Energy Management in Brazil - Electricity & Utilities Metering System -

15. Grupo SAGE | Energy Efficiency & Renewable Energy Energy Management in Brazil - Electricity & Utilities Metering System -

16. Grupo SAGE | Energy Efficiency & Renewable Energy

17. An initiative of Procel-Eletrobrás An initiative of Procel-Eletrobrás Under an MGI program, a site is divided into several Energy Accountability Centers (EACs), where energy consumption is monitored on a regular basis. Under an MGI program, a site is divided into several Energy Accountability Centers (EACs), where energy consumption is monitored on a regular basis. By analyzing past performance, a standard energy consumption level is set for each EAC. This makes it possible to relate the energy used to a relevant variable. By analyzing past performance, a standard energy consumption level is set for each EAC. This makes it possible to relate the energy used to a relevant variable. Actual energy use is compared to this baseline and the findings are presented to managers. Further, targets are set for the achievement of better-than- standard performance. Actual energy use is compared to this baseline and the findings are presented to managers. Further, targets are set for the achievement of better-than- standard performance. Energy Management in Brazil - MGI: Definition -

18. Grupo SAGE | Energy Efficiency & Renewable Energy Established technique to help reduce energy costs through improved energy efficiency and energy management control. Established technique to help reduce energy costs through improved energy efficiency and energy management control. It enables commercial enterprises to manage energy use as a controllable resource. It enables commercial enterprises to manage energy use as a controllable resource. It also contributes to better environmental performance, better production budgeting, and more effective environmental management activities within recognized standards such as ISO 14000. It also contributes to better environmental performance, better production budgeting, and more effective environmental management activities within recognized standards such as ISO 14000. Energy Management in Brazil - MGI: Benefits -

19. Grupo SAGE | Energy Efficiency & Renewable Energy Investment needed to put an energy M&T system into operation include: Tools (metering, software for data analysis) - critical for monitoring water and energy use; Tools (metering, software for data analysis) - critical for monitoring water and energy use; Capacity building to develop in-house competence in establishing benchmarks for conservation and loss minimization activities; Capacity building to develop in-house competence in establishing benchmarks for conservation and loss minimization activities; Studies to identify, evaluate, and justify other energy efficiency initiatives. Studies to identify, evaluate, and justify other energy efficiency initiatives. Energy Management in Brazil - MGI: Investments -

20. Grupo SAGE | Energy Efficiency & Renewable Energy Step 1: Conduct an energy audit to identify the energy efficiency opportunities Step 2: Implement an energy management structure that will operate the program Step 3: Review metering structure to generate proper information Step 4: Operate the energy management system Energy Management in Brazil - MGI: Implementation Steps -

21. Grupo SAGE | Energy Efficiency & Renewable Energy Energy Management in Brazil - MGI: Inputs - Handheld datalogger Existing computer files Manual entry Automated Metering Corporate file server (Table Required) M&T System

22. Grupo SAGE | Energy Efficiency & Renewable Energy Energy Management in Brazil - MGI: Cicle - What are “critical success factors” for improving energy efficiency? Select Energy Accountable Centers Install Additional Meters Establish Standards for Energy Use Select Energy Cost Drivers Establish Targets for Energy Use Review and Verify Energy Savings (Avoided Costs) Review and Verify Energy Savings (Avoided Costs)

23. Grupo SAGE | Energy Efficiency & Renewable Energy Energy Management in Brazil - MGI: Cicle - What are “critical success factors” for improving energy efficiency? Plan Actions Take Action Measure Consumption Measure Output Set Targets MGI Implementation Plan MGI Performance Contract

24. Grupo SAGE | Energy Efficiency & Renewable Energy Energy Management in Brazil - MGI: Cicle - Monitor Analyze Target Awareness & Training No or Low- Cost Measures Pre-investment Studies Capital Investment Awareness of Potential Management Commitment Preliminary Audit MGI Implementation Plan Monitoring, Targeting and Reporting (MGI) enables systematic use of information management technology to improve energy efficiency “Critical success factors” for sustainable energy efficiency

25. Grupo SAGE | Energy Efficiency & Renewable Energy

26. International standard that specifies energy management system requirement, upon which an organization can develop and implement an energy policy, and establish objectives, targets, and action plans which take into account legal requirements and information related to significant energy use International standard that specifies energy management system requirement, upon which an organization can develop and implement an energy policy, and establish objectives, targets, and action plans which take into account legal requirements and information related to significant energy use Used by any corporation (in size or economic activity) Used by any corporation (in size or economic activity) Based on Plan-Do-Check-Act (PDCA) approach Based on Plan-Do-Check-Act (PDCA) approach Relevant for Greenhouse gas emission reduction Relevant for Greenhouse gas emission reduction Energy Management in Brazil - ISO 50.001: Background -

27. Grupo SAGE | Energy Efficiency & Renewable Energy Contributions/experiences from Denmark, Sweden, Spain and Ireland Contributions/experiences from Denmark, Sweden, Spain and Ireland Former experience with the EU 16001 standard Former experience with the EU 16001 standard Integration ISO 9001, ISO 14001 Integration ISO 9001, ISO 14001 Energy Management in Brazil - ISO 50.001: Background -

28. Grupo SAGE | Energy Efficiency & Renewable Energy Continual improvement framework Energy Management in Brazil - ISO 50.001: PDCA -

29. Grupo SAGE | Energy Efficiency & Renewable Energy Establishing, implementing, maintaining and improving an energy management system Establishing, implementing, maintaining and improving an energy management system Define and document the scope and boundaries of its EnMS Define and document the scope and boundaries of its EnMS Determine how it will meet the requirements of ISO Determine how it will meet the requirements of ISO Energy Management in Brazil - ISO 50.001: Requirements -

30. Grupo SAGE | Energy Efficiency & Renewable Energy Energy management system model Energy Management in Brazil - ISO 50.001: EnMS -

31. Grupo SAGE | Energy Efficiency & Renewable Energy Top management responsibility Top management responsibility Energy policy Energy policy Energy planning Energy planning  Energy baseline  Energy performance indicators  Energy objectives, targets and management action plans Energy Management in Brazil - ISO 50.001: Requirements -

32. Grupo SAGE | Energy Efficiency & Renewable Energy Implementation and operation Implementation and operation  Competence, training and awareness  Communication  Documentation Checking Checking  Monitoring, managing and analysis  Others Management review Management review  Periodic review of energy policy and performance Energy Management in Brazil - ISO 50.001: Requirements -

33. Grupo SAGE | Energy Efficiency & Renewable Energy Associated Results

34. Grupo SAGE | Energy Efficiency & Renewable Energy Goals: Improved quality + reduced losses Improved quality + reduced losses Increased volume of production Increased volume of production Competitive advantage Competitive advantage Sustainable initiatives Sustainable initiatives Reduction of costs (up to 20%) Reduction of costs (up to 20%) Energy Management in Brazil - Associated Results -

35. Grupo SAGE | Energy Efficiency & Renewable Energy Muito Obrigado! Thank you! Pedro Paulo da Silva Filho (+55 21) 2532-0054 pedropaulo@gruposage.com.br www.gruposage.com.br