Panel: Perpectives on the main concerns and risks associated with the development of Large Hydropower Projects

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“

Regional Workshop on the Best Practices for

Large Hydropower Development”

Tucuruí, Brazil, November 22 – 23, 2011

Panel: “Perpectives on the main concerns

and risks associated with the development

of Large Hydropower Projects”

Tractebel Energia has an installed capacity of 6451 MW in 20 power plants: 80%

hydroelectric, 18% thermoelectric and 2% complements (Small Hydros, Biomass and Wind).

1 2 3 4 5 7 9 10 11 12 13 6 20 8 16 14 21 15 17 18 Termelétrica Hidrelétrica Legenda Complementar Em Construção 19 1.024,94 1.728,54

Usinas em Construção Capacidade Instalada (MW) Energia Assegurada/ Gar. Física (MWm)1 Total 2.182,4 1.292,9 Estreito (Hidro) 435,62 _256,92 20 19 Andrade (Biomassa) 18,32 _11,12 21 Jirau (Hidro)

Notas: 1 _{Valores segundo legislação específica.} 2 _{Parte da Tractebel Energia.}

3 _{Complexo composto por 3 usinas.}

Pedra do Sal (Eólica)

Usinas Termelétricas Capacidade Instalada (MW)

Garantia Física (MWm)1

Complexo Jorge Lacerda3 _{857,0 649,9}

William Arjona 190,0 136,1 Charqueadas 72,0 45,7 Alegrete 66,0 21,1 Total 1.185,0 852,8 9 10 11 12

Usinas Complementares Capacidade Instalada (MW) Energia Assegurada/ Gar. Física (MWm)1 Lages (Biomassa) 28,0 25,0 Beberibe (Eólica) 25,6 9,8 13 16 14 15

José Gelazio da Rocha (PCH) 23,7 11,9

Rondonópolis (PCH) 26,6 14,0

Usinas Hidrelétricas Capacidade Instalada (MW) Energia Assegurada (MWm)1 Salto Santiago 1.420,0 723,0 Itá 1.126,92 _544,22 Salto Osório 1.078,0 522,0 Cana Brava 450,0 273,5 Machadinho 403,92 _147,22 Passo Fundo 226,0 119,0 Total 5.124,1 2.609,0 1 2 3 4 5 7 Ponte de Pedra 176,1 131,6 8 São Salvador 243,2 148,5 6 17 19,8 10,9 18,0 7,8 18 Areia Branca (PCH)

3 Tractebel Energia is the major private energy generator company in Brazil.

Fonte: Aneel e websites das empresas.

Notas:

¹ Valor correspondente ao SIN - Sistema Interligado Nacional. (Interconnected National System) ² Inclui somente a parcela nacional de Itaipu. (Itaipu’s national portion only)

3 _{Capacidade instalada em construção. (Installed capacity of new plants under construction)}

Brazil – Installed Capacity 1,2

Private Sector – Installed Capacity (GW)

CESP 7,6% Eletrobrás 32,0% Petrobras 5,1% Outros 24,2% Copel 5,3% Cemig 6,9% Duke Energy 2,3% Tractebel 6,6% AES Tietê 2,7% Itaipu 7,2% 6,4 _2,7 2,2 1,7 1,7 1,1 _1,0 Tractebel

Energia AES Tietê EnergyDuke CPFL EDP Neoenergia Endesa

2,23

1998 2003 2011 73% 27% 20% 80% 14% 84% Thermal 995 1,201 1,201 Renewable 2,724 4,733 6,386 Total 3,719 5,934 7,587

Installed capacity growth

capacity since privatization mainly through renewable energy projects

Installed

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Tractebel Energia has been part of the BOVESPA’s Corporate Sustainability Index (ISE) since the launch of this index in 2005.

ISO 9001 and 14001

Tractebel Energia is the first among

Brazil`s main generators to obtain

100% of its plants certified with

NBR ISO 9001 and NBR ISO 14001

certifications, granted by BVQI

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Socio-Environmental Code of Ethics – Instituto

Acende Brasil

International Hidropower Association – IHA

Sustainability Protocol

In Brazil, São Salvador HPP was chosen to test the

applicability of the Sustainability Protocol

9 “Providing regional and local benefits, as an important player in enabling communities sustainable development objectives”

• Health: new buildings and reforms in hospitals, new ambulances

and funds to improve the medical care.

• Education: new classrooms, libraries and school buses.

• Sanitation: sanitary landfills, trash-compactor trucks and recycling

facilities.

• Promoting formation of committees for garbage disposal and

recycling

• Public Security: acquisition of vehicles and facilities for Police

Department

• Water supply - Improving water distribution

• Electric energy supply - Improving distribution lines

• Improvements in sports courts

• New roads and bridges with superior building pattern.

Tractebel Energia and the IHA’s principles:

“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs”

• Recovering degraded areas using native tree nursery produced

by local people

• Providing resources to environmental conservation unit.

• Implementation of the Permanent Preservation Areas, including

more then 300,000 trees per year.

• Use and Conservation Plan for the reservoir surrounding area.

• Jobsite Work Accidents observing international patterns

• Special care with fauna and flora

• Archeological and Cultural heritage investments

Tractebel Energia and the IHA’s principles:

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• Non-owner families in social vulnerability become owners of land and

house for the first time in their lives

• Changes in the way of agricultural production, avoiding to set fire

progressively into the natural forests

• Helping families in the transition period with a financial aid and social

assistance to face this new reality “as owners”

• Technical support for new and best techniques to their crops.

• Encouraging association among resettled families

• Environmental education as a permanent consciousness

• Preferentially contracting local people as workers and providing

professional training before construction

• Providing technical and financial support to implement a sustainable

process of fish production with local fishing communities.

“Sustainable development embodies reducing poverty, respecting human rights and changing patterns of production with a responsible

environmental management”

Tractebel Energia and the IHA’s principles:

• Agreements with universities to promote deep and permanent knowledge of the regional forest biodiversity.

• Fauna rescue and scientific researches.

• Providing botanical collections to the scientific community

• Flora rescue as a base for disseminating the knowledge in the local community

and also for news researches (genetic bank)

• Providing financial support to start small businesses in the production of

seedlings, extraction and handcrafts with Cerrado fruits.

• Funding for Child Counselling in the municipalities

• Promoting cultural and leisure events to talk about environmental education and

citizenship

• Additional social investments to improve local infrastructure

• Implementing Cultural and Sustainability Centers where the HPPs are located.

“Synergies and trade-offs amongst economic, social and environmental values in a transparent and accountable manner, taking advantage of expanding knowledge, multiple perspectives and innovation”

Tractebel Energia and the IHA’s principles:

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• Direct negotiation with the community to discuss the social programs, in order to

reach shared solutions.

• Strong social communication to guarantee transparence.

• Environmental education with the schoolchild and reservoir neighborhood

population (seminars, workshops, preparing environmental leadership).

• Social inclusion – helping families in getting documentation to include them in

social government programs.

• Local associations obtaining knowledge from our experts, in a way of keeping

the knowledge in the region

• Implementing programs for improving health standards and youth and adult

literacy with NGO’s.

“Social responsibility, transparency and accountability as core of sustainability principles”

Tractebel Energia and the IHA’s principles: