RENEWABLE ENERGY AND ENERGY EFFICIENCY FINANCING AND POLICY NETWORK FORUM

Transcription

1 Ministry of Mines and Energy RENEWABLE ENERGY AND ENERGY EFFICIENCY FINANCING AND POLICY NETWORK FORUM Dilma Rousseff Ministra de Minas e Energia Washington, DC March 11

2 Table of Contents Brazil s Context Brazil s Renewable Energy Matrix Policy for Renewables PROINFA Biomass and Alcohol Electricity for Everyone Biodiesel The Role of Energy Efficiency

3 Brazil General Information Area: 8.5 million sq. km Population: million GDP (2004): US$ billion GDP per capita: US$ 3,401 Exports (2004): US$ 96.5 billion Imports (2004): US$ 62.8 billion SOURCE: IPEA; DATA; REUTERS (DEC 2004)

4 BRAZIL S RENEWABLE ENERGY MATRIX

5 Brazilian Energy Matrix Renewable Sources 43.6% Biomass 29.1% Hydro Electricity 14.5% Uranium (U 3 O 2 ) 1.5% Mineral Coal 6.5% Natural Gas 8.7% Oil and Derivatives 39.7% Source: MME / BEN 2005

6 Global and National Electricity Supply Global Electricity Supply, 2001 Natural Gas 17% Oil 8% Brazil Electricity Supply, 2003 Nuclear 17% Other Renewables 2% Hydro 17% Coal 39% Other Renewables 4% Nuclear 4% Natural Gas 4% Oil 3% Coal 1% 19% Renewable Sources 88% Sources: IEA, MME / BEN 2004 Hydro 84%

7 WORDL S CONTEXT RENEWABLE AND EMISSIONS

8 Greenhouse Gas Emissions x Electricity Supply LIGNITE COAL OIL NATURAL GAS SOLAR PV HYDRO BIOMASS WIND Electricity Supply Brazil 92% Global 36% Electricity Supply Brazil 8% Global 64% NUCLEAR gceq per kwh Source: IEA

9 CO 2 EMISSIONS unit: ton CO 2 per ton. Oil equiv. 2,49 2,17 2,42 2,35 2,36 1,69 Brasil USA Japan Germany OCDE World Fonte: International Energy Agency IEA in Key World Energy Statistics (2003)

10 BRAZIL S HYDROPOWER

11 Hydro Potential:Developed X Developing Contries Congo Indonesia Peru Russia China Colombia India BRAZIL Canada Italy Sweden USA Norway Japan Germany France % Exploited Hydropotential Source: World Energy Council (1999);ANEEL (2002)

12 HYDROPOWER AND ENVIRONMENT Aspects considered in the planning of the hydropower plants Environment - Previous Environmental Licensing - Integrated Environmental Evaluation Hydro Basins Social Impacts -Direct and Indirect : bore by the investors - Regional Development Actions : bore by royalties

13 FINANCING OF NEW HYDRO PLANTS LOWER RISK BIDDING PROCESS PREVIOUS LICENSING LONG TERM PPA Diversification of Finance Sources Domestic and International Savings Participation of Finance Multilateral Organizations Public-Private Partnership Prospects for expansion of private capital investment in the Brazilian electricity sector

14 POLICIES FOR RENEWABLES

15 Policy for Renewable Targets: HYDROPOWER PROGRAM: 17 projects (2,819 MW) will start up operation in 2009 BIODIESEL: Authorized addition of 2% of Bio-Diesel in mineral Diesel until This percentage may be increased to 5% or more until PROINFA: Implementation of 3,300 MW shared among the following technologies: wind, biomass and small hydro LIGHT FOR EVERYONE: 2.5 million new connections until 2008 approximately 200,000 will be supplied with renewable ETHANOL: 500,000 flex-fuel vehicles sold in 2005 and exports of 6 billion litres/year until 2010

16 PROINFA Objectives: Diversification of the electricity supply by strengthening the role of biomass and small hydro Absorption of new technologies (wind) Main Results: 150,000 new direct and indirect jobs US$ 1,3 billion investment in equipment and materials Private investment of about US$ 2,9 billion Avoided emissions of 2.5 million tons of CO 2 /year

17 PROINFA (FINANCING) ELETROBRÁS PPA for 20 years with Eletrobrás Eletrobrás guarantees 70% of the generation BNDES FINANCING CONDITIONS Ten year payment term Equity - Debt : 20% - 80% Six Month grace period after construction

18 PROINFA RESULTS Capacity 3.3 GW Generation TWh per year Revenue US$ m illion per year Total Investm ent 3,840.1 US$ m illion Required Debt 2,688,1 US$ m illion

19 Other Renewables Electricity Capacity ,466 3, , Capacity - M ,200 1,266 1,379 1, Small Hydro Wind Biomass Capacity Installed until March 2005 Capacity Increased by PROINFA Estimated Capacity in 2007

20 SOLAR ENERGY IN THE CONTEXT OF LIGHT FOR EVERYONE

21 Brazilian Solar Potential Daily Global Solar Radiation Annual Average (MJ/ m2 daily) Source: CRESEB/CEPEL

22 Light for Everyone National Electrification Program Promotion of universal access to electricity with grid extension and renewable Investment of US$ 3.2 billion Deployment of energy availability and use as a prime mover of sustainable development.

23 Green Fuel Matrix Program Diversification of fuel matrix: Fossil & Renewable Alcohol & Biodiesel Creation of employment and income in Brazil Matching of an environment friendly fuel

24 Fuel distribution for vehicle transportation in Brazil ETHANOL SHARE 5,3 + 8,9 14,2% Natural Gas 2,2% Ethanol 5,3% Gasoline (*) 35,6% ETHANOL 8,9% Diesel 56,8% REPLACEMENT WITH BIODIESEL 2 a 5% 1,1 to 2,8% (*) All gasoline commercialized in Brazil has 25% of ethanol.

25 Alcohol in Brazil Industrial Plants Location SUGAR CANE INDUSTRIAL PLANTS NORTH-NORTHEAST REGION 87 INDUSTRIAL UNITS: SUGAR MILLS 9 ETHANOL PLANTS 28 ETHANOL AND SUGAR 50 SOUTH-CENTRE REGION 217 INDUSTRIAL UNITS: SUGAR MILLS 4 ETHANOL PLANTS 60 ETHANOL AND SUGAR 153 Fonte = MME

26 SUGAR-CANE AGROBUSINESS: INVESTMENT New Sugar-Mills - Accumulated Number of sugar mils/ distillery: 304 Planted Area: 5,4 Million hectares For the production of ethanol and sugarr 3 SUGAR MILL 5 SUGAR MILL 2010 Increment in the Planted Area: 2 Million hectares versus An Increment of the Ethanol Production of: 10 Million de m Plants (Costs): Distillery Only: US$ 70 Million With Sugar Production: US$ 100 Million SUGAR MILL ANO 11 SUGAR MILL 16 SUGAR MILL Plants (Capacity): Distillery Only : 500 thousand l/day With Sugar Production : 350 thousand l/day 23 SUGAR MILL Accumulated investments (US$ Million) FONTE: MME, DEDINI (2005)

27 BIODIESEL

28 Biodiesel: raw material in Brazilian s regions Babassu Castor-Bean Palm Cotton-Seed Palm / Soybean North Northeast Soybean Castor-Bean- Cotton-Seed Middle-West Southeast Soybean - Cotton-Seed Sun-flower Soybean - Cotton-Seed Sun-flower Região Sul South

29 THE ROLE OF ENERGY EFFICIENCY

30 The Role of Energy Efficiency BENEFITS Delays investment in new energy capacity Reduces overall environmental impact Lowers energy costs for consumers Increases national competitiveness both domestically and abroad New business opportunities and job creation

31 PROCEL National Program for Conservation of Electric Energy Targets: Industry, water distribution systems, municipal administrations, public and private buildings, street lighting, schools, technologic development Savings of about 17 billion kwh in 18 years of the program, which is equivalent to the annual average consumption of 10 million homes avoidance of R$ 13 billion in investments Avoidance of 1,530 km 2 hydroplants in drowned area by