2
Erico CardosoProfessor at Fundacao Fundacao Getulio Vargas – Business CollegeProfessor at Universidade Federal Fluminense – Business CollegeMaster Degree in Administration at IBMEC – Concentration Area: Finance and Stock Market - Specialization in Financial Market – ANDIMA/IERJ – 2002MBA in Management and Corporate Finance – Fundação Getulio Vargas – 2001Posgraduation in Financial Administration – Fundação Getulio Vargas –1999Undergraduation in Business Administration - Universidade Federal Fluminense - 1999
Jorge KreimerProfessor at Fundacao Getulio VargasMBA in Corporate Finance – Fundação Getulio Vargas – 2006Undergraduation in Business Administration - Bennett - 2001
Who am I?
3
AGENDA
Reasons for InvestmentDifficultiesSolutionsProgram Luz para Todos – Energy for all program
4
Reasons For Investment
Imagine yourself...
Without comunication for speaking with somebody you love;
Without energy for study or work;
Without TV or Internet to see landscapes, others countries;
Without radio to hear your favourite song;
Without fuel to heat up your food...
There are 1.7 billion people in the world that lives in this way.
5
fds
Reasons For Investment
Access of the World Electricity
6
Reasons For Investment
A quarter of the World’s People (1.7 billion) don’t have eletricity in their houses and 2.0 billion use the traditional fuels coming from biomass.
Those people spend more money using ineficient energy than they would spend if they had eletric power in home
It is important to allow more people to attain higher standard of living. (Reduction of poverty).
Reduction of the indoor air pollution from burning tradicional fuels (major factor of the causes of respiratory illness that it kills almost 2 million children under the age of five year. It kills more than AIDS, Malaria and Tuberculosis.
7
Reasons For Investment
It allows the change of the productive time spent by the women and children collecting firewood and biomass. They can study or work.
Social impacts: Create jobs and raise incomes, transfer skills and build local capacity, transfer a share of fiscal revenues and increase the investment in social infrastructure.
It increases income from the poor people.
It is more expensive to buy several candles than pay monthly fee for energy services.
8
Reasons For Investment
Strong correlation between the devolpment of a country and its consumption of energy:
-3%
-1%
1%
3%
5%
7%
9%
11%
13%
15%
1953 1959 1965 1971 1977 1983 1989 1995
Tx cresc PIB Tx cresc cons
9
Reasons For Investment
Planet Earth
10
Difficulties
The price of installing a transmission line is very high in rural areas.
The private sector doesn’t fell attracted for investment in social reasons.The ROI (Return on Investment) is better in urban areas than in rural areas.
Poor people use not be a former opinion.
The maintenance of the project is expensive.
11
Solutions
ESCO (Energy Service Companies) can reduce the cost of electricity in rural areas.
"ESCO's - Companies of Services of Energy's Conservation - they are deprived companies that have as objective accomplishes businesses in the extent of the reduction of costs and consumption of energy and usefulness used in the compounds industrial, commercial, of services, among other users of energy, without affecting the quality and amount of the product or offered service." (ABESCO, 2004).
12
Solutions
It develops, elaborates the form and finances projects of energy efficiency.
It installs and maintains the efficiency of the equipment of energy efficiency involved.
It measures, monitors and verifies the economy of the project of energy.
It assumes the risk that the project will save the amount of energy guaranteed.
13
THE ENERGY FOR ALL PROGRAM (O PROGRAMA LUZ PARA TODOS)
Universalization of the Access and Use of the Electric
Power
Generation of Socioeconomic Benefits
Solutions
14
* Creation and development in 2003
* Actions since 2004
Parternerships PNUD, World Bank, USAID, NGO’s
Adhesion in 2003 to GVEP (Global Village Energy Partnership)
“LUZ PARA TODOS”THE ENERGY FOR ALL PROGRAM
15
“LUZ PARA TODOS”THE ENERGY FOR ALL PROGRAM
MAIN IDEAS AND GOALS1-Reduction of poverty and hunger using
the energy as a development vector
2-Social Inclusion, Maintainable Growth and Quality of Life
3-Energy acccess to 12 million people (most of them in the rural areas) until the year of 2008
16
“LUZ PARA TODOS”THE ENERGY FOR ALL PROGRAM
Coordinated by the Ministry of Mines and Energy and executed by Eletrobras
Other Participants:
- STATES
- EXECUTIVE AGENTS (Dealers of Electric Power and Cooperatives of Rural Eletrification)
- MINISTRIES
- ANEEL (Federal Agency that rules the Energy market)
- NATIONAL AND STATES’ COMISSION AND COMITTEES.
17
“LUZ PARA TODOS”THE ENERGY FOR ALL PROGRAM
Technological Options Program use three alternative actions,
that compose the service to the demands of each area:
1 – Network's Extension2 – System of Generation
Decentralized with Isolated Networks
3 – Individual Systems of Generation
18
Eletrobrás Mixed Economy Company - Controlled by the Federal Govermment - Shares negociated in the Stocks Exchange (Brazil, USA, Spain)
Holdind of the Eletrobrás GroupEletrobrás Controls: FURNAS - CHESF – CGTEE
ELETRONORTE - ELETROSUL ELETRONUCLEAR
“LUZ PARA TODOS”THE ENERGY FOR ALL PROGRAM
19
“LUZ PARA TODOS”THE ENERGY FOR ALL PROGRAM
Process of Implementation Eletrobras - multiple functions
- To sign the “Term of Commitment” among the Federal Government, States and the Executive Agents after analyzing the “Program of Works” presented by the Executive Agents, as well as directing it to Ministry of Mines and Energy (MME)
- Liberation of financial resources after contract signature and to prove the appropriate use of the resources, besides inspecting the works physically. Eletrobrás elaborates and it sends, monthly or when requested, reports seeking to provide the program partners on information regarding the works and financial resources
- Administration of the program main financial resources (the “sectorial funds” RGR and CDE)
20
AC8.851
AM9.287
PA45.528
AL – 29.883BA
104.980
CE - 46.762
ES – 17.449
GO10.770
MA81.042
MT24.403
MS10.205
MG86.519
PB - 12.924
PR12.782
PE - 57.630
PI10.098
RJ - 6.940
RN - 16.265
RS20.622
RO8.190
RR1.014
SC - 15.716
SP – 27.121
SE - 18.364TO
15.618
AP0
AC8.851
AM9.287
PA45.528
AL – 29.883BA
104.980
CE - 46.762
ES – 17.449
GO10.770
MA81.042
MT24.403
MS10.205
MG86.519
PB - 12.924
PR12.782
PE - 57.630
PI10.098
RJ - 6.940
RN - 16.265
RS20.622
RO8.190
RR1.014
SC - 15.716
SP – 27.121
SE - 18.364TO
15.618
AP0
AchievementsNUMBERS REACHED IN CONNECTIONS ACCOMPLISHED IN THE BRAZILIAN HOMES
Brasil
698.963
source: Eletrobrás - updated in 01/12/2006
21
Achievements NUMBERS REACHED IN CONNECTIONS + CONTRACTS
source: Eletrobrás - updated in 01/12/2006
Total
Contracts Connections
Total Brazil
1,109,774 698,963
22
AchievementsPHYSICAL POSITION OF GEOGRAPHICAL CONNECTIONS
source: Ministry of Mines and Energy - updated in 27/12/2006
ACCUMULATED CONNECTIONS
CONNECTIONS IN PROCESS
PEOPLE BENEFITED WITH
ACCOMPLISHED CONNECTIONS
PEOPLETO BE
BENEFITED WITH WORKS IN PROCESS
NORTH 126.487
53.294
632.435 144.530
MIDDLE-WEST
478.660
TOTAL 991.536 159.825 4.957.680 799.125
GEOGRAPHICAL AREAS
SOUTHEAST
SOUTH
NORTHEAST
236.326
28.906
2.393.300 266.470
62.275 1.181.630 311.375
79.841 11.564 399.205 57.820
70.222 3.786 351.110 18.930
23
Achievements
In the beggining of 2007
ENERGY FOR ALL “Luz Para Todos” has reached
More than 5.000.000 people !
24
The End
Contacts:
Erico Cardoso
E-mail: [email protected]
Contacts:
Jorge Kreimer
E-mail: [email protected]