energy efficiency in brazil and the energy efficiency program regulated by aneel

CARLOS EDUARDO FIRMEZABrazilian Electricity Regulatory Agency - ANEEL

´BrasiliaMay - 2010

Energy Efficiency in Braziland

the Energy Efficiency ProgramRegulated by ANEEL

SUMMARY

1. Energy Efficiency in Brazil

2. Brazilian Electricity Regulatory Agency - ANEEL

3. The Energy Efficiency Program Regulated by ANEEL (PEE)

• Legal and Regulatory Aspects• Extent – Distribution of Resources in the Country• Investment and Results• Chalenges and Perspectives

1. ENERGY EFFICIENCY PROMOTIONPROGRAMS IN BRAZIL

PBEPBENationalNational LabelingLabeling

ProgramProgram -- INMETROINMETRO

19841984

PROCELPROCEL 19851985

PEE – Utilities´ Energy EfficiencyPrograms

20002000

Energy Efficiency Law(no 10.295, october 17 th - 2001) 20012001

19911991

1.1. National Labeling Program –INMETRO (National Institute of Metrology)

Cooperation Protocol firmed in 1984 betweenthe Ministry of Industry and Commerce andABINEE, with MME intervention

Coodenated by INMETRO and withparticipation of manufacturers on WG

Energy Savings promotion by establishmentof informative labels regarding machines andequipments consumption

Volunteer caracter at the beginnning

Compulsory caracter afterwards

Basis on specifical technical rules for eachmachine/equipment

1.1. National Electricity Conservation Program -PROCEL

PublicBuildings3%

Water andSanitation

3%

PublicEnergyManagement10%

PublicLighting

3%

Industrial44%

Residential25%

Comercial12%

PROCEL SUBPROGRAMS


1. R$ 113 million / year (~ US$ 50 million)

2. Most Significant Results:

3 TWh / year of Energy Savings

700 MW of Peek Demand Reduction


• Energy Efficiency Seals

Created by National Decreee in 1993

PROCEL – National Program for Electricity Conservation

CONPET – National Program for Racional Use of Oil and Gas Derivatives

Awards the most efficient equipments in each category

Criteria established by the respectiveProgram, with INMETRO

1.2. National Energy Efficiency LawNo 10.295, october 17th - 2001

It forbids the entrance in the market of electrical products that are not in accordance with the minimum EE levels

It also establishes the evolution of maximum levels Refrigerator

1.2. National Energy Efficiency LawNo 10.295, october 17th - 2001

EQUIPMENTS:

Regulated: Triphase Electric Motors, CFL´s, Air-conditioners, Ovens, Stoves, Refrigerators and Freezers

In Regulation Process: Water and gas heaters, Commercial and Public Buildings,

In Study Process: Solar Water Heaters, Electromagnetic Lamp Reactors, TFL, Sodium Steam Lamps, Incandescent Lamps

Residencial Buildings: Regulation in development

SUMMARY





2. ANEEL – Agência Nacional de Energia Elétrica(Brazilian Electricity Regulatory Agency)

“To provide favorable conditions for the electricitymarket to develop in a balanced environment amongagents, for the benefit of society.”

2.1. ANEEL ATRIBUTIONS

Federal Autarchy vinculated to Ministry of Mines and Energy – MME

Created in 1996 by Federal Law No 9427

ATRIBUTIONS: Regulation, Mediation and Inspectionof Services and Instalations of Electric Energy

EE&C: (SPE) Regulation, Overview and Supervision ofEnergy Efficiency Projects implemented by utilities

GENERATION TRANSMISSION DISTRIBUTION COMMERCIALIZATION

2.1. ANEEL ATRIBUTIONS

PublicPublic InterestInterest

ConsummersConsummersModicityModicity ofof tarrifstarrifsQualityQuality ofof ServiceService

GuaranteeGuarantee ofof RightsRights

BalanceBalanceRegulatedRegulated AgentsAgents

AdequateAdequate RemunerationRemunerationContractsContracts ObservanceObservance

StabilityStability ofof RulesRules

GOVERNMENTGOVERNMENTStrategicStrategic InterestsInterests

2.2. STRUCTURE

Secretariat forOil, Natural Gas

And Renewable Fuels Secretariat forElectric Energy

Secretariat for Geology,

Mining and Mineral Transformation

DNPMANP

ANEELANEELCPRM

PETROBRÁSELETROBRÁS

EPEONS

INMETRO

Ministry of Mines and Energy

Secretariat forEnergy Planning

And Development

Secretariat forOil, Natural Gas

And Renewable Fuels Secretariat forElectric Energy

Secretariat for Geology,

Mining and Mineral Transformation

DNPMANP

ANEELANEELCPRM

PETROBRÁSELETROBRÁS

EPEONS

INMETRO

Ministry of Mines and Energy

Structure of Brazilian Energy organs related to EE&C Promotion

SUMMARY





3. THE EE PROGRAM REGULATED BY ANEEL3.1. FEDERAL LAW N˚ 9.991/2000

• Federeal Law No 9.991 (july 24th – 2000)

• Art. 1o “As concessionárias e permissionárias de serviços públicos de distribuição de energia elétrica ficam obrigadas a aplicar, anualmente, o montante de, no mínimo, setenta e cinco centésimos por cento de sua receita operacional líquida em pesquisa e desenvolvimento do setor elétrico e, no mínimo, vinte e cinco centésimos por cento em programas de eficiência energética no uso final...”

• I – “até 31 de dezembro de 2005, os percentuais mínimos definidos no caput deste artigo serão de cinqüenta centésimos por cento, tanto para pesquisa e desenvolvimento, como para programas de eficiência energética na oferta e no uso final da energia”

• Federal Law No 12.212 (january – 2010): I – up todecember 31th - 2015...

To December 2014To December 20141% of 1% of

UtilitiesUtilities´́ss Net Net RevenueRevenue

0,50% PEE 0,50% R&D

~ R$ 350 ~ R$ 350 millionmillion//yryr

(US$ 160 (US$ 160 millionmillion//yryr))0,20% R&D/ANEEL0,20% FNDCT 0,10% MME

1% 1% dada ROLROL

0,25% PEE/ANEEL 0,75% R&D

After January 2015After January 2015

0,30% R&D/ANEEL0,30% FNDCT 0,15% MME

1% of 1% of UtilitiesUtilities´́ss Net Net

RevenueRevenue

3. THE EE PROGRAM REGULATED BY ANEEL3.1. FEDERAL LAW N˚ 9.991/2000

% NETREVENUE

EE&CPROJECTS

Types of Projects Allowed

Commerce / ServicesDemand Side ManagementEducationalEnergy ManagementIndustrialPublic BuildingsPublic ServicesRuralPilot ProjectsLow Income Consumers(60 % minimum)

3. THE EE PROGRAM REGULATED BY ANEEL3.2. LEGAL AND REGULATORY ASPECTS

Examples of EE MeasuresLow Income Class Consumers

Substitution of bulb lampsSubstitution of fluorescent lampsSubstitution of refrigeratorsSubstitution of electric showers


$ Substitution of air conditionersSubstitution of electric motorsSubstitution of internal electricalinstalationSubstitution of pumping systemsDemand Side MenagementEducational measuresOthers

Types of EE Actions:

Examples of EE MeasuresLow Income Class Lighting

Examples of EE MeasuresLow Income Class Refrigerators


Over 30.000 refrigerators/year

60% of reduction


Cooling fluid extraction

Examples of EE MeasuresEducational Projects

Examples of EE MeasuresPublic Building

Examples of EE MeasuresIndustry: Motor Systems

Examples of EE MeasuresIndustry: Pumping Systems

Examples of EE MeasuresPublic Service: Pumping Systems

Examples of EE MeasuresCommercial Buildin:Automation System

Examples of EE MeasuresPilot Project

→ LED used in traffic lighting

Examples of EE MeasuresPilot Project

→ Heat recoverer coupled to an electricshower

→ Conceived under a R&D project

→ Energy Savings up to 30% to 50%

Examples of EE MeasuresDemand Side Management Project

• During summer: 5MVA ofcharge cutted out

• Overload on TransmissionLine

50 thousand consumers

Most critical periods:• December 31st• Carnaval´s Saturday

Demand Response on theNorthern Island ofFlorianópolis


System Control Center

Meters

Comunication

InfrastructureEnergy Consumption

Direct Control of Charges•Air-conditioners

•Pool pump

•Heaters

DRU


Features of the Project:• Electronic meter coupled

to a transponder• Power Line

Comunication• Smart Grid

Benefits of the Project:• Reduction of Power

Demand during peak periods

• Improve the Load Factor• Consumption Education

for EE&C• Pospone investments in

generation


• Specific tariff for each period of the day• Information to the consumer by e-mail, cell phone, radio, etc

3. THE EE PROGRAM REGULATED BY ANEEL3.3. Range of EE&C Coverage


“Art. 3º …a concessionária ou permissionária que acumular na Contade Eficiência Energética montante superior à soma do recolhimento

dos últimos dois anos estará sujeita às penalidades previstas naResolução Normativa no 063, de 12 de maio de 2004.

ANEEL Normative Resolution No 300 (feb 12th – 2008)

1. Evaluation of results instead of projects proposals2. Flexibility for projects cronograms3. Cost-benefict ratio equal or less than 0.84. Flexibility for project adjustments (physical and finantial targets)5. Requirement of a M&V Plan (according to IPMVP)

3. THE EE PROGRAM REGULATED BY ANEEL3.4. RESULTS: CYCLES 2000/2001 TO 2004/2005

Project Type ApprovedInvestment (R$)

Energy Savings(GWh/year)

PeekDemandAvoided

(MW)

Cost-Effectiveness

Public Lighting 374.608.281 797 175 0,48

Residential 133.474.859 930 313 0,32

Industrial 95.992.780 376 59 0,32

Public Services 91.277.906 312 118 0,45

Educational 80.878.694 90 25 0,11

Commerce/Services 59.489.341 130 30 0,21

Public Building 34.788.865 57 14 0,67

Water Solar Heating 19.406.493 n.d. n.d. n.d.

Rural 14.568.725 83 9 0,25

Losses Reduction 12.408.139 79 17 0,12

Municipal Menagement 11.470.338 n.d. n.d. n.d.

Demand Side Manag. 11.271.382 0,6 6 0,09

TotalTotal 939.635.803939.635.803 2.8532.853 765765 0,370,37

40%4%

6%

9%

10%

10% 14%

Iluminação Pública

Residencial

Industrial

Serviços Públicos

Educação

Comércio e Serviços

Poder Público

Aquecimento Solar

Rural

Perdas

Gestão E. Municipal

Total Total InvestedInvested (5 (5 cyclescycles): US$ 440 ): US$ 440 millionmillion

3. THE EE PROGRAM REGULATED BY ANEEL3.4. RESULTS: CYCLES 2000/2001 TO 2004/2005

3. THE EE PROGRAM REGULATED BY ANEEL3.4. RESULTS: CYCLES 2005/2006 AND 2006/2007

Project Project TypeTypeApprovedApproved

InvestmentInvestment(R$)(R$)

ApprovedApprovedInvestmentInvestment

(%)(%)

EnergyEnergySavingsSavings

((MWhMWh/ano)/ano)

PeekPeekDemandDemandAvoidedAvoided

(kW)(kW)

Residential 304.857.404,19 63,7 511.502 183.488

Public Buildings 58.054.933,90 12,1 64.786 16.525

Industrial 55.117.547,69 11,5 178.735 25.992

Public Services 26.355.705,27 5,5 38.899 7.706

Commerce/Services 22.862.519,95 4,8 27.067 6.103

Rural 6.389.850,12 1,3 7.634 3.597

Water Solar Heating 4.623.665,12 1,0 1.355 1.335

TotalTotal 478.261.626,24478.261.626,24 100100 829.979829.979 244.746244.746

3. THE EE PROGRAM REGULATED BY ANEEL3.4. RESULTS: CYCLES 2005/2006 AND 2006/2007

Total Total InvestedInvested (2 (2 cyclescycles): US$ 217 ): US$ 217 millionmillion

63,74%12,14%

11,52%

5,51%4,78%

Residencial

Public Buildings

Industrial

Public Services

Commerce/Services

Rural

Solar Heating

3. THE EE PROGRAM REGULATED BY ANEEL3.4. RESULTS: SUMMARY

2610,251383696106/07

3110,50/0,251585696305/06

1750,502759256404/05

3130,501104896403/04

1540,50542226402/03

1420,50853486401/02

1520,502518946400/01

2300,753701.0204299/00

1961,002507551798/99

Investiments(R$ x 103)

% da net Revenue

Peek DemandAvoided

(MW)

Energy Savings(GWh/year)

Nº CompaniesCycle

5,6 TWh 1,7 GW US$ 863 million

3. THE EE PROGRAM REGULATED BY ANEEL3.4. RESULTS: SUMMARY

RCB ≅ 0,40 or RBC ≅ 2,50

U$ 863 mi ⇒ U$ 2.157 mi

3. THE EE PROGRAM REGULATED BY ANEEL3.4. Projects in course: 2008-2012

100,00%1.273.652.015,28422.963,751.220.967,98TOTAL

7,93%100.997.604,4721.417,11103.285,40Public Services

1,17%14.913.128,5211.553,3223.629,19Rural

0,77%9.850.807,741.250,8215.986,57Residential

0,63%8.080.389,292.384,668.784,97Pilot Projects

9,14%116.409.662,4423.311,36102.185,14Public Buildings

0,44%5.557.510,70320,00480,00GLD

2,98%37.987.743,13741,9911.419,38Industrial

0,28%3.546.379,59Municipal Energy Managem

2,80%35.650.438,351.553,625.428,68Educational

1,02%12.956.683,722.534,4310.200,23Commerce&Services

4,97%63.292.825,388.619,0069.147,60Cogeneration

62,92%801.407.932,65335.108,16854.339,40Low Income Consumers

4,95%63.000.909,3014.169,2816.081,42Water Solar Heating

%Total Cost (R$)

PeakDemand

Reduction(KW)

EnergySavings

(MWh/year)Tipology

U$ 690 million

3. THE EE PROGRAM REGULATED BY ANEEL3.4. RESULTS: 2008-2012

U$ 690 million

1%

71%

8%

8%

6%

2% Water Solar HeatingLow Income ConsumersCogenerationCommerce&ServicesEducationalMunicipal Energy ManagemIndustrialGLDPublic BuildingsPilot ProjectsResidentialRuralPublic Services

Sustainability of EE MeasuresChange of behavior and market transformationEducational activities, trainning, management and marketingSocial and environmental responsability

Enphasis on resultsExtinguishment of anual programs – continuous flow of projetsFlexibility/autonomy on projects executionCommitment with results

Planning and Permanent ManagementManagement Structure and Investment PlanningCooperation and adoption of best practicesContinuous Improvement

3. THE EE PROGRAM REGULATED BY ANEEL3.5. Chalenges and Perspectives

Chalenges and Perspectives

Institutional alliance and sinergy between programs

Flexibility and transparency on destination of resources

Acuracy and reliability of data/results (M&V)

Supervision and inspection of actions

Evaluation and publicity of results and impacts

Systematic repplication of acquired knowledge

Cooperation, Commitment and Responsability...

THANK YOU!

CARLOS EDUARDO FIRMEZAANEEL – Brazilian Electricity Regulatory Agency

ADDRESS:SGAN – Quadra 603 – Módulos “I” e “J”

Brasilia – DF – 70830-030 - BRAZILTEL.: ++55 61- 2192 [email protected]

www.aneel.gov.br

energy efficiency in brazil and the energy efficiency program regulated by aneel

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