Cemig acting vertical

(1)

Alexandre Heringer Lisboa

November/2015

(2)

Generation capacity: 7.038MW

7% do mercado

Predominantly hydropower Growth in renewable energy Natural gas as an alternative

Unregulated market

25%

Retail

Greater

distributor

Distribution

510.744 Km

 12% of the market

 Heavily regulated segment

Transmission*

10.060 Km

 3% of the market

 Mesh with national reach

*includes indirect interest in the assets the newly acquired Abengoa

(3)

Cemig – Significant presence in the energy scenario of Brazil.



More than 200 companies and consortium;



Leading Companies :



Cemig Geração e Transmissão;



Cemig Distribuição;



Efficientia;



Gasmig;



Light;



Renova Energia;



Taesa;



Axxiom;



Cemig Telecom;



Ativas.

Estates and Chile Presence in PB AM AC RO PA MA RR AP PI CE RN PE AL SE BA TO MT GO MS SP PR SC RS ES RJ MG DF Chile

Free Clients of Cemig Power purchase Wind generation Gas Distribuition Generation

Generation (in construction) Transmission

Transmission (in construction) Distribuition

(4)

Minas Gerais in the brazilian energy context

Oferta BR 2013 Oferta MG 2013 116499 13151 16479 4150 37792 1367 83365 13779 5026 0 37054 5338 296215 37785 TOE Thousands Coke Natural gas Biomass Nuclear Hidroelectricity Source:

1) Balanço Energético Nacional - 2014 (ano base 2013)

2) Balanço Energético do Estado de Minas Gerais - 2014 (ano base 2013) 3) http://www.iea.org (Key World Energy Statistics 2014)

(5)

2024 Brazil Decennial Electric Energy Plan:

.

 Exists the forecast that PV, installed only in residences and commerce, will reach 1.6 TWh in 2024.This represents 1.6% of the total distributed generation or 0.2% of the total electricity to be supplied in 2024.

.

 The amount of the distributed generation of 100 TWh, forecasted to 2024, is equivalent to the record the generation of Itaipú Power Plant (the second largest plant of the world): 98,6 TWh.

source: Brazilian Ministry of Mines and Energy (MME)

1,6 TWh DG = 1,15 GWp (1 KWp = 1,4 MWh/year

Distributed Generation I

Potencial Market

DG is one of more efficient alternatives and focus of the brazilian government initiatives to expansion of energetic supply.

Forecasts that the expansion of electric energy generation by the DG on several sources will be on average 7% by year until 2024

(6)

OUR BUSINESS

• Provider of solutions and engineering services in energy efficiency

• Founded in 2002

• 100% Cemig owned

• Certificated in Quality Management System (ISO 9001)

Cogeneration

Distributed Generation

Finals as lighting uses

Air conditioning, refrigeration, etc.

Connection

 Industrial

 Trade and Services

 Public Sector

 Partnerships with other

utilities

Consulting and Training

Utilities centers

(7)

PERFORMANCE CONTRACT

Previous Costs

With

Energy Costs after project Implementation Costs after Implementation of the project Efficientia

$

After project During project Before project

Customer’s Benefit

A Cemig Company

(8)

• First uses in the 80’s;

• Intensified in the 90’s:

• Assistance program for rural development in Brazil;

• Rational Use of Energy in Agriculture (CEMIG/GTZ);

• Energy Development Program of States and Municipalities

-“PRODEEM”;

• “LUZ SOLAR” Program - Rural Pre-electrification using

Photovoltaic Systems (Phase 1: 550 rural households and 200

schools in partnership with MME;

• Continuity in the 2000’s:

• “LUZ PARA TODOS” Program - P

V systems were installed in 1700

homes and 300 rural schools located in the northern and eastern

regions of the state of Minas Gerais;

(9)

• Termosolar Plant

• Thermosolar plant deployment (~ 10kW) within

project R&D 190 ANEEL- 2008;

• Productive chain:

• Research project (R&D 127 ANEEL) to silicon

purification laboratory scale;

• Systems connected to the Grid

• Implementation of 4 small systems (~ 3 kWp

each) within project R&D 12 ANEEL- 2005;

• Implementation of 1 small system (~ 10 kWp);

• Implementation of 2 small systems (~ 5 kWp

each) within project cities of future - 2012

Historical CEMIG

(10)

Systems connected to the Grid

• USF Mineirão (1,42 MWp) – CEMIG/KfW – 2013

(one of the biggest PV

on Soccer Stadium in the World)

• New headquarters of Cemig (30 kWp) – 2014;

• Biggest Data Center in Latin America (300 kWp) – CEMIG/Algar

-2015;

(11)

(12)

MG: PV potential (DG-distributed generation)

DG (RN Aneel 482/12)

Brazilian market until

October/2015

Number of connections per source

(13)

MG: Wind potential

Studies show that the wind potential in the state reaches 40

gigawatts (GW) at a height of 100 meters above the ground,

capacity 2.7 times higher than that of Itaipu.

(14)

PV prospecting projects

Partner

PV

Local

Power

BHTec USF BHTec Belo Horizonte - MG 120 kWp

Prominas USF Expominas Belo Horizonte - MG 300 kWp

Algar Telecom Several sites Several municipalities in MG 450 kWp

Alsol Vilage I Uberlândia - MG 321,44 kWp

Armazens Gerais do Leste de Minas USF AGLM Varginha - MG 300 kWp

Inhotim USF Inhotim Ibirité - MG 3000 kWp

Grupo Pão de Acúcar Several sites Several municipalities in Brazil To be estimated