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Doing Business in Brazil
Lauro FiuzaVice President of the ABEEólica Board
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Brazil in the Global Scenario
Source: GWEC
Ranking 2013
3
201215th Place
2.5 GW
201313th Place3.4 GW
201410th PlaceForecast
1 China 91.42
2 USA 61.09
3 Germany 34.25
4 Spain 22.96
5 India 20.15
6 UK 10.53
7 Italy 8.55
8 France 8.25
9 Canada 7.80
10 Denmark 4.77
11 Portugal 4.72
12 Sweden 4.47
13 Brazil 3.4614 Poland 3.39
15 Australia 3.24
16 Turkey 2.96
17 Holland 2.69
18 Japan 2.66
19 Romania 2.60
20 Ireland 2.04
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Brazil in Figures
Source: ABEEólica/ANEEL5
Hydroeletric86.067%
Biomass11.49%
Petroleum Derived7.76%
Coal3.389465
3%
Natural Gas12.510%
Thermal Other1.41%
Thermal Nuclear1.992%
Wind3.53%
Installed Capacity [GW]
Brazilian Power Matrix 2013
*The photovoltaic source has 5.9MW
of installed capacity.
Source: ABEEólica6
Accumulated Installed Capacity (MW)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
27.1 235.4 245.6 323.4 606.2 931.81,430.5
2,507.1
3,445.3
7,310.6
9,861.0
11,363.211,413.6
13,751.4
New (MW) Accumulated (MW)
Source: ABEEólica/ANEEL7
536.3 MW
351.9 MW
1,972.1 MW
Wind Farms Locations
34.5 MW
3,914.0 MW
2,320.3 MW
951.6 MW
69.0 MW
3,335.7 MW
28.1 MW
2.5 MW
236.4 MW
TOTAL
13,752.3 MW
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Competitive Advantages
Source: CCEE9
Capacity Factor
jan/13 feb/13 mar/13 apr/13 mai/13 jun/13 jul/13 aug/13 sep/13 oct/13 nov/13 dec/130%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
33%35%
30%
23%25%
26%
30%
42%
45%47%
46%
36%
Source: ABEEólica/ONS10
Complementarity
jan/13 feb/13 mar/13 apr/13 mai/13 jun/13 jul/13 aug/13 sep/13 oct/13 nov/13 dec/130
20,000
40,000
60,000
80,000
100,000
120,000
140,000
455 458 459
346385 390
467
659
685
736716
583
Energy Stored in All Reservoirs (GWh) Wind Energy Generation (GWh)
Source: ABEEólica/CCEE11
LER 2013
Hired: 1,505.2 MW
Power Purchase Agreements
Auctions from 2009 to 2012
Hired: 7,040.7 MW
Total 2013 = 4,710.6 MW
PROINFA
Hired: 1,203.0 MW
Source: ABEEólica12
Average Price per year
2004 - PROINFA 2009 2010 2011 2012 2013 $-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00 $150.09
$78.57
$65.59
$48.25
$40.09
$50.21
Fonte: ABEEólica13
WTG Tower Blade
Acciona Alstom Aeris Energy
Alstom Engebasa LM
Gamesa Intecnial Tecsis
GE Wind RM Pernambucana Wobben Windpower
Impsa Tecnomaq
Siemens Torresbrás
Suzlon Wobben
Vestas
WEG
Wobben Windpower
Manufacturers in Brazil
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Opportunities & Challenges
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Advantages
• Long Term Credit
– BNDES: competitive loan terms
• Credit Lines for Manufacturers
– FINAME from BNDES
– Tax Incentives (Federal, State and Municipal)
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Opportunities
• Local Supply Chain Demand
• Consistent Growth of Wind Power within the Power Matrix
• High Demand for Business Services and Consulting
• Independent O&M Players
• Training Programs for Industry Professionals
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Challenges
• Brand New Industry
– Early stage database
• Labor
– Build expertise
• Technology
– Adjustment to Brazilian wind conditions
– R&D
• Grid
• Infrastructure
• Logistics
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Brazilian Innovation Chain in Wind Power
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What is this?
• Enhanced knowledge exchange environment;
• Online platform for interaction between companies, universities, research centers and developers;
• Structure that enables the partnership between the agents in support of research and development; and
• Structure that optimizes the use of resources.
events
Online platform
periodic
forum
meetings of innovation
Knowledge network
R&D projects
partnership Technological
Institute -company
RBIEE
Brazilian Network for the Development of Wind Power
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Forecast
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State Planning by EPE (Power Planning Agency)
Private Sector Estimates
Forecast
Decennial Energy Plan
2012 2016 2022
Capacity(GW)
Participation in the Matrix
(%)Capacity
(GW)Participation in the Matrix
(%)Capacity
(GW)Participation in the Matrix
(%)
1.8 1.5 10.8 7.3 17.5 9.5
ABEEólica
2012 2016 2022
Capacity(GW)
Participation in the Matrix
(%)Capacity
(GW)Participation in the Matrix
(%)Capacity
(GW)Participation in the Matrix
(%)
2.5 2 11.3 7.7 21.8 11.9
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Access: www.abeeolica.org.br
Thank you!