Smart Grid Overview in Brazil Let the U.S. Commercial Service connect you to a world of opportunities. Everett Wakai Commercial Officer/Standards Attaché Igly Serafim Commercial Specialist – Renewable Energy/Smart Grid U.S. Commercial Service Brazilian Electric Power Grid - where we are today Smart Grid Activities in Brazil U.S. Commercial Service Trade Counseling Market Intelligence Business Matchmaking Commercial Advocacy Any Export Questions Our Global Network 2013 Commercial Service Highlights Overall U.S. exports reached $2.3 trillion in 2013, up nearly $700 billion since 2009 Over 18,000 U.S. companies were assisted by U.S. Commercial Service in 2013 U.S. firms reported 14,735 export transactions which were facilitated by U.S. Commercial Service in 2013 82% of U.S. Commercial Service-supported export transactions were reported by small/medium companies (less than 500 ) employees INTERNAL ENERGY SUPPLY Energy Consumption by Group in 2012 Industry 35,1% Transportation 31,3% Residential 9,4% Agribusiness 4,1% Services 4,5% Energy Sector 9,0% (Non-Energy Use Energy Use Power Generation 2661 power generators – 200 Hydro 124 GW installed power generation capacity 84% of electricity generated is from renewables (76% from hydropower: above 30 MW) 2011-2020 Investment in power generation: R$ 190 B (US$ 105 B) Average power consumer tariff (2011): R$ 266.62 MW/h (approx. US$148.00) Brazilian Power Matrix Total Installed Capacity Brazil = 117 GW Source: Aneel Transmission 77 concessionaires - 100k km of transmission lines (regulated) Voltage above 230 kvolts Electric Grid (SIN – Sistema Interligado Nacional) 97% of electricity 3% isolated systems, mainly in the Amazon region Transmission Expansion Plans Power Expansion Plan (PDE) 2011-2020, US$ 23 billion. – US$ 15 billion transmission lines – US$ 8 billion in substations Brazil’s PDE 2020 42 thousand km, a 42% increase. 137 projects 230kV, greater than 10km. 118 installed by 2015. Distribution 64 utilities Annual Revenues R$140 billion (2013) /2.2% GDP The private sector 67%, state-owned 33% 74 million consumer units (85% residential) US$ 5 billion in investments 2012 14 % national average electric power loss $23/kWh average rate (2010) Non-technical losses, reliability and interconnection Challenges for the Electric Power Grid Record temperatures and drought Increased consumption Exposed to spot market R$822 R$ 11 – 20 billion shortfall Recent auctions 85% at R$268 Elections S&P downgrade sovereign debt to BBB- Smart Grid Implementation Drivers Non technical losses Power Quality/Reliability Peak reduction Integration of Renewables Customer Service Climate Change Energy Efficiency Program (PEE) Smart Grid Implementation Barriers Policy and Regulatory shifts – Not mandatory smart meter installation Rate structure – Time of use/dynamic pricing postponed Lack of financing Lack of energy conservation incentives Smart Grid Projects AES Eletropaulo: Barueri (SP) 60,000 customers $32 million – Complex urban center; outage management and remote repairs CPFL: 25,000 smart meters – RF Mesh network, meter reading, billing, inspection and fraud detection. EDP: Aparecida, InovCity program , 13,450 digital meters – LED public lighting and electric mobility solutions CEMIG: Sete Lagoas, 3,200 smart meters – 8,000 clients (test case ) financial, socio economic and client acceptance AMPLA: Buzios, smart city, 10,000 meters − 20% energy savings with variable rates , Electric bikes, free internet and electric water taxis Light: 1.4 million AMI Smart Grid Regulations, Standards & Cooperation ANEEL ANATEL Inmetro ABNT/Cobei U.S. – Brazil Cooperation (Inmetro, NIST and SGIP) – Cybersecurity – Security – PMU – Interoperability U.S. Export Success Story Grid monitoring and analytics software solutions Commercial Service Trade Mission in 2013 – Strategic partnerships with ELO Sistemas Eletronicos and MS Consultoria in Brazil – Negotiating with Brazilian utility – First to receive product homologation in Brazil – Gained significant press exposure Recognized as #1 Smart Grid Sensor Company in North America in 2013 Contact us today to connect with a world of opportunities. Everett Wakai Commercial Officer/Standards Attaché U.S. Commercial Service - Brazil Phone: 55-11-3250-5402 everett.wakai@trade.gov Igly Serafim Commercial Specialist, Renewable Energy and Smart Grid U.S. Commercial Service - Brazil Phone: 55-11-3250-5187 Igly.serafim@trade.gov www.export.gov/Brazil