Brazil´s Plan for Energy Efficiency Eduardo Coelho Corrêa

SMES

Brazil´s Plan for Energy EfficiencyEduardo Coelho CorrêaSMES/GGEE – Corporate Manager for Energy EfficiencyWorld Energy Council representative25 / 05 / 2011

Simposio Internacional:

Eficiencia energética para el desarrollo nacional

SMES Agenda

Foundations of an Energy Policy

History

Brazilian Energy Policy Structure

Energy Efficiency

SMES Foundations of an Energy Policy

Meeting the current and future energy demands, to ensure economic growth and income distribution in a sustainable manner:

Meeting the Current Energy Demand Current

Projections for Future Energy Matrix

Projections of Energy Demand

Security of Supply

Reliability

Stability

Accessibility

Operational Safety

Sustainability

SMES Foundations of an Energy PolicySpecific Policies:

Prioritization of energy sources and respective strategic and sustainable technological routes

Awards for Energy Efficiency in Generation

Pricing policy that encourages the rational use of energy

Investment in Infrastructure for Rationalization of Means of Transportation

Investments in the rational use

Standards and Requirements for Projects


$$ rational MWh <<<<<< $$ aditional MW

Environmental Licences

Supply Chain

Maintenance

Operation


$$ rational MWh <<<<<< $$ aditional MW

Environmental Licences

Supply Chain

Maintenance

Operation

Decoupling

Energy Efficiency Auctions

SMES Decoupling

Patti's family uses 972 kWh during July, with a peak demand of 2.3 kW.

Jon's family uses 855 kWh during July, with a peak demand of 6 kW per month.

Patti's family uses an evaporative cooler for air conditioning, which doesn't use as much energy as Jon's family central air conditioning.

However, Patti's family has two young adults at home that stay up late playing video games, often while simultaneously watching TV. The hours when everyone is asleep and lights are off is reduced to two or three hours per night rather than the usual six to seven hours per night. Jon's family uses more energy for air conditioning but everyone goes to bed by midnight, even on weekends.

http://www.utilipoint.com/issuealert/article.asp?id=3121

SMES Decoupling

SMES “Decoupling”

SMES WEC - National Energy Policies Worldwide

www.worldenergy.org/publications/energy_efficiency_policies_around_the_world_review_and_evaluation/1166.asp

Energy Efficiency Policies around the World: Review and Evaluation ContentsAcknowledgementsRemerciementsForewordSummaryRésumé1 Introduction2 Energy Efficiency Trends3 Evaluation of Energy Efficiency Policies and Measures4 Conclusions and RecommendationsAnnexesBibliography

SMES History

Winston Churchill required that oil burning battleships be built and, in doing so, was able to increase ship speed and reduce refuelling time. The consequence of that decision was reliance on Middle Eastern oil and this gave rise to the creation of the Anglo-Persian Oil Company, the forerunner of British Petroleum;

During the period of the Cold War, the United States and the former Soviet Union focused largely on domestic energy production rather than reliance on international trade, which might be at risk of interruption;

The Reagan administration believing that the best way to achieve energy security was to couple market forces with a suitable insurance policy involving diplomatic and military action and the filling up of strategic reserves". In this regard, a cornerstone of US energy policy has been engagement with the Middle East and the building of strong relationships with countries like Saudi Arabia..

SMES Histórico

Therefore, the belief of the 1980s and 1990s that is perhaps now seen as misplaced and incompatible when issues such as energy conservation and microeconomic efficiency is also optimal from a macroeconomic standpoint environmental management are considered;

The resurgence of energy policy and government intervention has led to the establishment of principles such as having "no regrets". This policy aims to strike a balance between meeting energy demands and sustainability.

SMES History

Finon (1994) concludes that energy policy trends are dictated by three factors:

First: government recognition of the negative externalities associated with energy consumption and a consequent desire to minimize those externalities through intervention that supports energy efficiency and demand-side management;

Second: the degree to which energy policy features on governmental agendas depends on energy prices, in that security of supply concerns ease while international energy prices are low;

Third, Finon (1994) concluded that political ideology has great impact on the: level of government intervention in energy markets

SMES Brazilian Energy Policy Structure

CNPE: The “Conselho Nacional de Política Energética” is an advisory body to the President. Its function is to formulate energy policies and guidelines designed to:

I - Promote the rational use of energy resources in the country, in accordance with the provisions of applicable law and the following principles:

a. preservation of national interest;

b. promotion of sustainable development, expansion of the labor market and recovery of energy resources;

c. protection of consumer interests with respect to price, quality and availability of products;

d. environmental protection and promotion of energy conservation;

e. guarantee the supply of petroleum products throughout the national territory, in accordance with § 2 of Article 177 of the Constitution;

f. increasing the use of natural gas;

g. identifying the most appropriate solutions for the supply of electricity in different regions of the country;

h. use of renewable energy by taking advantage of available resources and applicable technologies;

i. promotion of free competition;

j. attraction of investment in energy production;

k. k. expansion of the country's competitiveness in international market;

SMES CNPE

II – ensure in terms of regional characteristics, the supply of energy to remote areas or difficult to access in the country, submitting the specific measures to Congress, when they imply in the creation of subsidies, as set forth in paragraph one of Article 73 of Law n . 9,478, in 1997I - promote the rational utilization of energy resources in the country, in accordance with the provisions of applicable law and the principles;

III – periodically review the primary energy matrix applied to the various regions of the country, considering the conventional and alternative sources and technologies available;

IV – establish guidelines for specific programs, such as natural gas, alcohol, other biomass, coal and thermonuclear energy;

V – establish guidelines for the import and export so as to meet the needs of domestic consumption of petroleum and its derivatives, natural gas and condensate, and ensure the proper functioning of the National System of Fuel Stocks and the fulfillment of the Annual Plan for Strategic Fuel Stocks, mentioned in Article 4 of Law No. 8176 of February 8, 1991

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SMES CMSEThe Comitê de Monitoramento do Setor Elétrico (CMSE) was created by Law 10,848 of 2004, with the task of monitoring and evaluation permanently the continuity and security of electro energetic supplies throughout the country.

I - follow the development of generation, transmission, distribution, marketing, import and export of electricity, natural gas and petroleum and its products;

II - evaluate the conditions of supply and service, for the activities mentioned in item I of this article, over a predetermined period;

III - periodically conduct an integrated analysis of security of supply and service to the market of electric power, natural gas and petroleum and its products;

IV - identify difficulties and obstacles of technical, environmental, commercial, institutional order and others that affect or could affect the regularity and security of supply and execution of the expansion of the sectors of electricity, natural gas and petroleum and its products, and

V - prepare proposals for adjustments, solutions and recommendations for preventive actions or to correct situations observed due to the activity indicated in item IV, seeking to maintain or restore security of supply and electro energetic service, forwarding them when appropriate, the Conselho Nacional de Política Energética - CNPE.

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SMES Órgãos Reguladores

The Agência Nacional de Energia Elétrica (Aneel), under the Ministry of Mines and Energy, was established by Law No. 9427 de1996.

The agency has the responsibility to regulate and monitor the generation, transmission, distribution and sale of electricity,

www.aneel.gov.br

A Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP), established in 1998 year by Decree No. 2455.

Responsible for regulating and implementing the national policy for the energy sector from oil, natural gas and biofuels, according to the Petroleum Law (Law 9.478/1997).

www.anp.gov.br

SMES Execução Diretrizes CNPE

Founded in March 2004, the Empresa de Pesquisa Energética (EPE), a public enterprise under the Ministry of Mines and Energy, aims to provide services in the area of studies and research to support the planning of the energy sector.

Among the researches are electricity, oil and natural gas and its products, coal, renewable energy sources and energy efficiency

www.epe.gov.br

www.petrobras.com.br

www.eletrobras.com

www.cprm.gov.br

www.dnpm.gov.br

SMES

Uranium2%

Firewood10%

Sugar Cane Products19%

Outras Renováveis4%

Petroleum41%

Natural Gas9%

Uranium2%

Steam Coal1%

Primary Energy Production: 241.100 x 103 tep

https://ben.epe.gov.br/downloads/Relatorio_Final_BEN_2010.pdf

EPE

Brazilian Energy Balance year 2010

SMES

https://ben.epe.gov.br/downloads/Relatorio_Final_BEN_2010.pdf

EPE

Study of integrated planning of energy resources;Provides assistance for the formulation of a strategy for expanding the supply of economical and sustainable energy trying to fulfill the evolution of demand, according to a long-term perspective.

The PDE is one of the main tools for energy planning, guiding decisions related to the balance and the country's economic growth. Elaborated with the assistance of agents working in the energy sector, the academic community and other segments of Brazilian society.

20 years

10 years

SMES Energy Efficiency

Law No. 10.295 - October 17th, 2001 - National Policy for Conservation and Rational Use of Energy

Art. 1º Efficient allocation of energy resources and environmental preservation.

Art. 2º The Executive will establish maximum levels of specific energy consumption, or minimum energy efficiency of machinery and apparatus

Art. 3º Manufacturers and importers of machinery and energy-consuming devices are required to take the necessary steps to be obeyed the maximum levels of energy consumption and minimum energy efficiency,

Art 4º Standards for Energy Efficiency in Buildings

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To promote the rationalization of production and consumption of electricity, in order to eliminate waste and reduce costs and investments.

Created in December 1985 by the Ministries of Mines and Energy and Commerce and Industry, and managed by an Executive Secretariat subordinate to Eletrobras.

On July 18, 1991, was transformed in a Government program, and expanded its scope and responsibilities.


Petrobras supports the technical and financial administration of the National Programme of Rational Use of Oil and Natural Gas - CONPET, created by the Federal Government in 1991

Promotes the development of an anti-wasteful use of nonrenewable natural resources, encourages the efficient use of energy in various sectors, with emphasis on transport, industries and homes, and develop environmental education.

OBJECTIVES:

Provide technical support to increase energy efficiency in end use of energy;

Promote research and technological development;

Reduce emissions of greenhouse gases in the atmosphere;

Educate consumers about the importance of rational use of energy for sustainable development and improved quality of life;

Rationalize the consumption of petroleum and natural gas.

SMES Brazilian Labeling Program

http://www.inmetro.gov.br/consumidor/pbe.asp

The PBE is a program that, through informative labeling, aims to guide the consumer about the efficiency of some products sold in the country

Objective:

Encourage the rationalization of energy consumption by using more efficient products. Labeling allows consumers to evaluate the various products as to their energy efficiency and select the ones that will bring greater savings during its use.

SMES Laws

No 9991 24th July 2000

Establishes the obligation for investment in energy efficiency programs in the final use by the Brazilian companies distributing electricity.

No 4059 19th December 2001

Procedures for the establishment of Indicators and Levels of Energy EfficiencyAccountability and Coordination: MME

Executor: Steering Committee of Energy Efficiency Indicators (CGIEE), composed of MME, MCT, MDIC, ANEEL, ANP, PROCEL CONPET, Society and Universities

No 4508 11th December 2002

Minimum efficiencies for induction motors 1-250 Cv

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SMES Energy Efficiency Plan

Premissas e Diretrizes consolidadas em fevereiro de 2011 após consulta pública

Objetivo:

Consolidar as estratégias operacionais vigentes que estão produzindo bons resultados, ampliando sua abrangência, e criar novas estratégias, comvistas a garantir a perenidade de algumas medidas de EE e assim torná-las alternativas confiáveis e relevantes às opções de ampliação da oferta de energia no planejamento da expansão do setor energético nacional.

Implantação:

Planos de Trabalho plurianuais elaborados sob a responsabilidade do MME.

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Assumptions and Guidelines consolidated in February 2011 after public consultation

Objective:

Consolidate the existing operational strategies that are producing good results, expanding its reach, and create new strategies, with order to guarantee the survival of some measures of EE and thus make them relevant and reliable alternatives to the options for expanding supply of energy in planning the expansion of the national energy sector.

Implementation:

Multi-annual work plans prepared under the responsibility of the MME

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SMES Energy Efficiency PlanContent:

1. PROJECTION OF POTENTIAL FOR CONSERVATION OF ELECTRICITY ........ 2. LAWS AND REGULATIONS FOR ENERGY EFFICIENCY IN BRAZIL .. 3. ENERGY EFFICIENCY FOR SECTORS OF INDUSTRY AND MICRO AND SMALL ENTERPRISES 4. ENERGY EFFICIENCY FOR THE TRANSPORT SECTOR 5. ENERGY EFFICIENCY IN EDUCATION 6. PROCEL CONPET 7. Brazilian Labeling Program - PBE 8. BUILDINGS 9. ENERGY EFFICIENCY IN PUBLIC BUILDINGS 10. ENERGY EFFICIENCY IN LIGHTING 11. ENERGY EFFICIENCY IN SANITATION 12. ENERGY EFFICIENCY PROGRAMS IN SOLAR WATER HEATING 13. ENERGY EFFICIENCY AND R & D 14. MEASUREMENT AND VERIFICATION OF ENERGY EFFICIENCY PROJECTS (M & V) 15. INTERNATIONAL PARTNERSHIPS 16. FUNDING FOR ENERGY EFFICIENCY INITIATIVES 17. REFERENCES

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For each item:

OBJECTIVE

BACKGROUND

PROPOSED LINES OF ACTION

SMES References

www.mme.gov.br

www.aneel.gov.br

www.anp.gov.br

www.eletrobras.com

www.petrobras.com.br

www.cprm.gov.br

www.dnpm.gov.br

www.epe.gov.br

www.utilipoint.com/issuealert/article.asp?id=3121

Documents

Brazil´s Plan for Energy Efficiency Eduardo Coelho Corrêa