Evento Amcham 19 abril 2013 / 2013 Jorge Alcaide 1 ... Engines: 20 x Wärtsilä 18V34SG 14 x Wärtsilä 20V34SG Total output: 227 MW ... [email protected]

Wärtsilä BrasilPower Plants

“Eficiência Energética: projetos, determinações e investimentos”

Abril / 2013

Jorge Alcaide

19 April 20131 © Wärtsilä

Content

1. Wärtsilä Corporation and main figures

2. Power generation market (world & Brazil energy demand)

3. Future of electricity production - Smart Power Generation


SERVICES

POWER PLANTS

SHIP POWER

Our business areas

19 April 2013 CORPORATE PRESENTATION 20133 © Wärtsilä

Our personnel

19 April 2013 CORPORATE PRESENTATION 20134 © Wärtsilä

Nearly 19,000 professionals,in 70 countries

Wärtsilä in Brazil

New Niteroi workshop and office to support the offshore (O&G) business

New Niteroi workshop and office to support the offshore (O&G) business

Future Pernambuco workshop to support local PP installations and the shipping market

Future Pernambuco workshop to support local PP installations and the shipping market

Manaus workshop to support local PP installations and to facilitate the training of personnel in Wärtsilä Land & Sea Academy

Manaus workshop to support local PP installations and to facilitate the training of personnel in Wärtsilä Land & Sea Academy

• Wärtsilä Brasil Ltda was founded in 1990• 600 employees today• 29 power plants with installed power of

>2,5 GW

Rio de Janeiro workshop and downtown officesRio de Janeiro workshop and downtown offices


• (9) TermoCabo, 52,6MW

•(6) Petrolina, 140 MW -HFO

• (5) UTE Bahia, 34MW - HFO

• (20) Santana, 63,7MW - LFO

• (12) Coteminas, 6,4MW (N. Gas)

• (15) Kaiser, 5,2MW – (N. Gas)

•(24) Manaus Energia,164,9MW - HFO

•(29) Termo Norte, 65,2MW - LFO

•(27) Solimões, 4MW - HFO

•(26) Hermasa, 15,8MW -HFO

•(25) Reman, 6,8MW - HFO

• (2)O Globo, 5,4MW (N. Gas)

• (11) Coca Cola, 3,6MW (N. Gas)

•(28) Rio Branco, 10,5MW - HFO

•(23) Gera Manaus 85MWdual Fuel

• (22) Manauara 85MWDual Fuel

•(21) Rio Amazonas 85MW dual Fuel

Brazil installed base, April 2013

• (3) Viana, 176MW -HFO•(4) Linhares, 204MW (N. Gas)

• (17) (18) Geramar I & II, 331MW - HFO

• (10) Suape II, 380MW -HFO

• (13) Borborema 176MW• (14) Maracanaú I, 168 MW -HFO

April 2013

• 29 Power Plants• 2,560 MW installed capacity• 1,800 MW under O &M contract •(1) Itaipú, 15,8MW - LFO

Sistema isolado

Sistema interligado

• (16) Nova 9,3 MW-(N. Gas)

• (7) Itaguassú 12 MW (N. Gas)

• (8) Pernambuco III, 200MW HFO -

•(19) P IV 56MW (N. Gas)


1) Figures exclude non-recurring restructuring items and selling profits.

Financial highlights

MEUR 2012 2011 2010 2009

Order intake 4 940 4 516 4 005 3 291

Order book at the end of the period 4 492 4 007 3 795 4 491

Net sales 4 725 4 209 4 553 5 260

Operating result1 515 469 487 638

% of net sales1 10.9 11.1 10.7 12.1

Earnings/share, EUR 1.72 1.44 1.96 1.97


Power Plants


Electricity consumption

-2,00%

0,00%

2,00%

4,00%

6,00%

8,00%

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

Electricity yearly cons. growth %

GDP yearly growth rate %

0

4.000.000

8.000.000

12.000.000

16.000.000

20.000.000

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

Electricity final consumption

Electricity consumption of industry

Electricity consumption of residential, services,agriculture

Source: Enerdata

Electricity Consumption & GDP GrowthWorld Electricity ConsumptionGWh

Reasons for growth of electricity demand • Electrification (heat pumps, appliances...)• GDP growth• Increasing standard of living

Growth will continue• Recession may stagnate demand growth• GDP growth – divided world!


Economic growth to drive the increase in installed power

0

500

1 000

1990 1995 2000 2005 2010 2015 2020 2025 2030

National energy demand (TWh / year)

-10

-8

-6

-4

-2

0

2

4

6

8

10

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

GDP Electrical Energy Consumption

Annual change in GDP vs. increase in electrical energy consumption (% p.a.)

2001 Rationing 2008 Financial Crisis

Source: EPE Plano Nacional de Energia 2030 and IBGE; MME

% TWh

The National Energy Agency EPE anticipates the annual energy demand to more than double during 2010 - 2030, from less than 500 TWh to more than 1000 TWh per year

The historically strong correlation between real GDP growth and the annual increase in eletrical energy consumption suggests that the strong demand for power plants is to continue.


19 April 2013 CORPORATE PRESENTATION 201311 © Wärtsilä19 April 201311 © Wärtsilä


Smart Power Genetarion - Movie


Cumulative capacity

0

1000

2000

3000

4000

5000

6000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GW

Nuclear Coal Gas Oil Other thermal Hydro Pumped Storage Wind Solar


• GDP growth, electrification and increasing standard of living drive the growth of electricity demand

• Demand for sustainability and focus on climate change

• Rapid growth of intermittent renewable generation

• Escalating daily, weekly and seasonal demand fluctuation increases the need for flexibility

• Increasing role of gas, especially as a balancing fuel

• Ageing installed capacity drives investments in new technologies

The world needs affordable, clean, flexibleand reliable power.

Market trends and drivers


16 © Wärtsilä

Coal power plants Load

Wind generation

Gas generation

Plains End power plantsWärtsilä’s flexible generation

PLAINS END POWER PLANT, COLORADO, USA

Type: Grid stabilityEngines: 20 x Wärtsilä 18V34SG

14 x Wärtsilä 20V34SGTotal output: 227 MWFuel: Natural gasInstalled: 2002 and 2008

Remote controlled from Colorado Dispatch Center

Screen shot from Colorado Dispatch Center, Xcel Energy, USA3 May 2008

Estudo de Caso: Smart wind chasing in Colorado, US



Power generation in Brazil – forecast for future

Smart Power Generation is a new concept which enables an existing power system to operate at maximum efficiency by effectively absorbing current and future system load variations, providing significant savings.

Reliable Sustainable

Affordable

Smart Power

Generation


ChallengesFirm energy is necessary. New hydro projects are based on run-of-river concept, i.e. without huge reservoirs / wind power will not be able to assure the system reliability / solar will be introduced in the energy matrix.

Balancing offer / demand / price equation is a must. This discussion shall be solved.

Up to 2020 the main hydro plants without huge requisitions about environmental questions shall be under construction or under design, after that it will be difficult to explore the Brazilian hydro potential (located in Amazonas region, where the environmental questions are the key).

NG is going to be a bridge to link today's period t o the future.

Nuclear will be the next target to the government.

1 - The electrical sector expansion will be based on :Conventional electric power generation (means hydro) / Renewable / Thermal power

2 - The energy consumption is going to double from 2 010 to 2030

3 - Natural gas will be available (it is the future of pre-salt exploration and LNG availability)

Jornal Valor Econômico


Maximum efficiency = Highest energy efficiency, lower emissions, dramatic savingsSmart Power Generation concept system savings have been proven in several power systemsSPG can provide spinning reserve while it is NOT spinning, using no fuel

Smart Power Generation

Smart Power Generation is a new concept which enables an existing power system to operate at its maximum efficiency by most effectively absorbing current and future system load variations, providing dramatic savings.

Wärtsilä is the leader inSmart Power Generation!

AFFORDABLE

SMARTPOWERSYSTEM

RELIABLE SUSTAINABLESMARTPOWER

GENERATION

ENERGYEFFICIENCY

OPERATIONALFLEXIBILITY

FUEL FLEXIBILITY


SMARTPOWERGENERATION.COM

21 © Wärtsilä

[email protected]

www.smartpowergeneration.com

Documents

Evento Amcham 19 abril 2013 / 2013 Jorge Alcaide 1 ... Engines: 20 x Wärtsilä 18V34SG 14 x Wärtsilä 20V34SG Total output: 227 MW ... [email protected]