8 th WORLD WATER FORUM BRASÍLIA- BRASIL, MARCH 18-23,

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2 Crisis and the future of São Francisco River March 22, 2018 Eletrobras Secretariat of the 8 th World Water Forum 1

3 Renewable energy Eletrobras makes a decisive contribution to keep the Brazilian energy matrix one of the cleanest in the world. About 94% of the company`s installed capacity comes from low greenhouse gas emission power plants. Eletrobras Generation Sources Hydraulic 87% Conventional Thermal 7% Nuclear 4% Wind and solar 2% 2

4 The largest electric power company in Latin America 3

5 Among the world s top 5 hydropower generators in installed capacity R$ billion in assets Shares traded on the Stock Exchange of São Paulo, Madrid and New York The 16 th largest energy company in the world 31% of generation 47% of transmission 4

6 Present throughout Brazil Eletrobras is present in all regions of the country 5

7 Profile of the São Francisco Basin 8% of the national territory length 1,762 mi drainage area over 157,900 thousand acres area equivalent to Germany, Austria, Switzerland, Belgium, Netherlands and Czech Republic altogether 6

8 Goiás 0.8% Minas Gerais 49.5% Profile of the São Francisco Basin DF 14% Pernambuco 10.6% In the São Francisco Valley, 18.3 million Brazilians live, which means 8.9% of the total population Alagoas 6.5% Sergipe 2% Bahia 16.6% Demographic Concentration 18% MEDIUM SÃO FRANCISCO 57% UPPER SÃO FRANCISCO 10% LOWER SF 15% SUBMEDIUM SF 7

9 Profile of the São Francisco Basin About 58% of its territory is located in the Semiarid region, recording critical drought periods. 9 hydroelectric power plants Environmental diversity covering four biomes: Caatinga, Savanna, parts of the Atlantic Rainforest, in addition to coastal and insular ecosystems and the main reservoirs are Três Marias (Cemig), in Minas Gerais; Sobradinho; Paulo Afonso and Luiz Gonzaga (in Bahia), and Xingó, between the states of Alagoas and Sergipe. 8

10 Profile of the São Francisco Basin The hydroelectric power plants and their capacities Paulo Afonso I: 180 MW Paulo Afonso II: 443 MW Paulo Afonso III: 794 MW Paulo Afonso IV: 2,462 MW Sobradinho: MW Xingó: 3,162 MW Luiz Gonzaga (formerly Itaparica): 1,479 MW Apolônio Sales (formerly Moxotó): 400 MW Três Marias: 396 MW (Cemig's) 9

11 The multiple uses of the river water Energy Generation (installed potential, of MW (12% of the country's total) Own consumption Navigation Irrigation extensive livestock farming including for export fruit growing including for export Fishing 10

12 The Crisis 8 th WORLD WATER FORUM BRASÍLIA-BRASIL, MARCH 18-23,

13 The environmental issue Pollution disposal of domestic and industrial sewage without proper treatment Silting Devastation of the vegetation layer on the river banks Diversion of the watercourse for illegal purposes Lower flow reduces soil fertility, hinders navigation and decreases the fishing activity Regular flow: +/- 2,000 to 2,500 m³/s. Today; +/- 600 m³/s. 12

14 The hydric crisis Drought: the most critical measuring in over 90 years. most critical points 13

15 The hydric crisis Usable volume of the reservoirs of the water system of the São Francisco River Usable Volume (%) UHE Três Marias UHE Sobradinho UHE Itaparica Equivalent Reservoir The equivalent volume of the reservor for 2018 is the 4th lowest of the historical series since 1998, on February 1st. ** On 02/01/2018 the defluences were 80 m 3 /s in Três Marias, 638 m 3 /s in Sobradinho and 560 m 3 /s in Xingó. Source: ANA 14

16 Investments in environmental projects along São Francisco River How much does Chesf invest today in environmental projects? R$ 350 million annually How much will be invested by the new Eletrobras, according to the Draft Bill 9.463/2018? Around R$ 20 million per year, on average R$ 350 million/year in the first 15 years and R$ 250 million/year, in the following 15 years, totaling 9 billion in 30 years. 15

17 What will be done with the privatization money 16

18 what will be done about the quantity of water and its uses To keep track of water resources, with more modern equipment To study ways of increasing the water availability, mapping the withdrawals of water and the reasons for the reduced flow To define rules to ease the operation of reservoirs To carry out flood control surveys To invest in warning systems and drought follow-ups To carry out surveys and have action plans for dam safety and floods Warning studies for critical droughts 17

19 what will be done about the land use and dam safety After the implementation of the dam safety policy in the river basin about the water quality and sanitation To improve the quality monitoring network of surface water, setting up automatic meters and developing environmental warning systems To implement sewage, solid waste and urban drainage systems 18

20 what will be done about water sustainability in the semiarid region To create a new energy matrix, less dependent on wood To assess the climate changes and its adaptation about biodiversity and environmental requalification To recover degraded areas, riparian forests and headwaters 19

21 Organization Support