Economy and Energy
Year  II - N° 8
May/June/1998

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Sunday, 13 December 1998.

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BRAZILIAN ENERGY SECTOR

1 - INSTITUTIONAL ORGANIZATION

2 - CHARACTERISTICS OF THE EXPANSION PLANNING OF THE BRAZILIAN ENERGY SECTOR

3 - MACRO-ECONOMIC AND ENERGY SITUATIONS

4 - IDENTIFICATION AND ANALYSIS OF ENERGY INTEGRATION STRATEGIES

ANNEX 1:
REPRESENTATIVE ENTITIES IN THE BRAZILIAN ENERGY AREA

BRAZILIAN ENERGY SECTOR

Production: Ministry of Mines and Energy

Contacts: João Antônio Moreira Patusco
patusco@mme.gov.br
English Version (under revision)
Frida Eidelman
frida@password.com.br

 

1 - INSTITUTIONAL ORGANIZATION

2 - CHARACTERISTICS OF THE EXPANSION PLANNING OF THE BRAZILIAN ENERGY SECTOR

3 - MACRO-ECONOMIC AND ENERGY SITUATIONS

4 - IDENTIFICATION AND ANALYSIS OF ENERGY INTEGRATION STRATEGIES

ANNEX 1:
REPRESENTATIVE ENTITIES IN THE BRAZILIAN ENERGY AREA


1 - INSTITUTIONAL ORGANIZATION

1.1 ENERGY SECTOR RESTRUCTURING
1.2. RESTRUCTURING OF THE PETROLEUM SECTOR
1.3. GLOBAL ENERGY POLICY 
1.4.CONCLUSIONS
annex 1

Since 1995 Brazil is firmly reformulating the energy sector, opening new opportunities for the participation of the private sector in the investments necessary and in the responsibility of guarantying the national supply.

New Structure of the Energy Sector (Diagram 1)

1.1 ENERGY SECTOR RESTRUCTURING

The energy sector restructuring started with the establishment of the Law 8,987 of 02/12/95, known as Law of Public Services Concession and the Sectorial Law 9,047 of 05/19/95, when the basic fundamentals of the new model were established and started openness to private capital participation . These laws introduced deep and important modifications, specially in : (i) procurement of new generation undertakings; (ii) the creation of the legal entity named Independent Energy Producer; (iii) free access to transmission and distribution systems; and (iv) the freedom granted to larger consumers for choosing their energy suppliers. Also in 1995, the Decree No 1,717 established the conditions and made possible the postponement and regrouping of public services concessions and the approval of the Conclusion Plan for the paralyzed works of 22 electrical generation undertakings, equivalent to 10,100 MW of power.

In 1996, the Decree No 2,003 of 09/10/96 regulated the conditions for independent and auto-producers to perform their activities. Still in 1996 it was created the National Electrical Energy Agency - ANEEL, by the Law No 9,427 of December 26, aiming at regulating and inspecting the production, transmission, distribution and commercialization of electric power in the country. In 1997, new regulations were established, specially: (i) the Law No 9,433 of January 8, which effected the National Policy for Hydraulic Resources and created the National System for the Management of Hydraulic Resources; (ii) the Decree No 2,335 which created ANEEL and approved its Regimental Structure; (iii) the Ministerial Law DNAEE No 167 of November 12, which consolidated the General Conditions for Electrical Energy Supply, harmonized with the Code for Consumers’ Defense ( Law No 8,078 of 09/11/90); (iv) the Ministerial Law MME which approved ANEEL’s Internal Regiment and extinguished the DNAEE and (v) the Decree 2,410 of November 28 which settles the calculation and collection of annual taxes on public service inspections by all concessionaires and authorized agents of electric power services.

Other important decisions occurred in 1998 with the publication of the Provisional Law (medida provisória) 1,531 of March 03 which authorizes the Executive Power to promote the restructuring of ELETROBRAS and its subsidiaries, specially the following regulations: authorizes the gradual withdrawing of the state from electric power business; guarantees the General Reserve Reversion up to year 2002 concerning the continuity of ELETROBRAS’ investments; establishes the date of 09/30/98 for the institution of the Electric Power Wholesale Market - EPWM, and the constitution of the Independent Operator of System - IOS; establishes a 15-month limit for IOS to star operating, in which date ELETROBRAS has the authorization to transfer the assets of the National Center of System Operation - NCSO, and of its Centers of System Operation - CSO, when GCOI ( GCOIS definition?) shall be extinguished; furthermore, from 2003 on, the concessionaires or authorized agents may negotiate energy amounts with gradual reduction , at an annual rate of 25% of the amounts relative to year 2002; authorizes the division of FURNAS into two enterprises, one for generation and the other for transmission; authorizes the division of ELETROSUL into two enterprises, one for generation and the other for transmission; authorizes de division of ELETRONORTE into five enterprises, two for generation, transmission and distribution in the isolated systems of Manaus and Boa Vista; one for the generation of Tucurui; one for generation in the electrical systems of Acre and Rondônia states and another for transmission; authorizes the division of CHESF into three enterprises, two for generation and one for transmission; authorizes ELETROBRAS to keep shares of the generation enterprises to be created by the division of FURNAS, ELETROSUL, ELETRONORTE and CHESF.

Some results can be pointed out as a result of the reformulation being carried out. It is the participation of the private sector in the generation and transmission of electrical energy which was practically zero in 1995 and in 1997 was 3% in generation and 32% in distribution.

1.2. RESTRUCTURING OF THE PETROLEUM SECTOR

The petroleum and natural gas sector was during 44 years submitted to the exclusive monopoly of the state-owned PETROBRAS enterprise, nevertheless, from the establishment of the Constitutional Amendment no 9 of 11/09/95, this monopoly was altered and by the Law 9,478 of 08/06/97, it was regulated the opening of the sector for the participation of private enterprises and their capital in all segments of this important activity.

Still by the Law 9,478, it was created the Petroleum National Agency - ANP, an entity which integrates the Indirect Federal Administration, submitted to the special autarchic regime, as a regulating agent of the petroleum industry, connected to the Ministry of Mines and Energy. In 1998, by the Decree 2,455 of January 14, the agency was established with the definition of its structure and posts.

Therefore, PETROBRAS will develop exclusively entrepreneurial activities, always linked to the Ministry of Mines and Energy and having the State as its main shareholder.

After its regulation and initial installation steps, the ANP, besides defining the areas which will remain with PETROBRAS, will be able to publish and execute a schedule of block procurements, starting a program of concession granting for petroleum and gas exploration, development and production activities.

1.3. GLOBAL ENERGY POLICY

In 1997, through the Law 9,478 of August 8, it was created the National Council of Energy Policies -CNPE, aiming at examining the proposition of policies for energy supply and use to be decided by the President of the Republic. In 01/14/98, by the Decree 2,457 which disposes about the structure and operation of the Council, the Minister of Mines and Energy and his Energy Secretary are respectively the chairman and secretary of the CNPE activities. Presently, the Ministry of Mines and Energy is taking the measures necessary for starting the CNPE activities.

1.4.CONCLUSIONS

With the start of ANEEL (National Agency of Electrical Energy ) activities at the end of 1997 and those of ANP ( Petroleum National Agency ), at the start of 1998 and also the creation of CNPE - National Council of Energy Policies, it was started a new step in the Brazilian energy sector evolution, characterized by an ample opening of its market, elimination of monopoly and withdrawing the state from activities that are suited to entrepreneurs.

The attached table 1 shows the new structure of the Brazilian energy sector and annex 1 presents the addresses, main managers and the new structure of the main agents involved in the management, control, regulation and execution of this sector.

Economy and Energy
Year  II - N° 8
May/June/1998

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BRAZILIAN ENERGY SECTOR

1 - INSTITUTIONAL ORGANIZATION

2 - CHARACTERISTICS OF THE EXPANSION PLANNING OF THE BRAZILIAN ENERGY SECTOR

3 - MACRO-ECONOMIC AND ENERGY SITUATIONS

4 - IDENTIFICATION AND ANALYSIS OF ENERGY INTEGRATION STRATEGIES

ANNEX 1:
REPRESENTATIVE ENTITIES IN THE BRAZILIAN ENERGY AREA

2 - CHARACTERISTICS OF THE EXPANSION PLANNING OF THE BRAZILIAN ENERGY SECTOR

2.1 GOVERNMENT’S MULTIANNUAL PLAN
2.2 MANAGEMENT OF THE BRAZILIAN ENERGY SECTOR
2.3 PLANNING OF THE ENERGY SECTOR EXPANSION
2.4 SECTORIAL ENERGY PLANNING
2.5 PLANNING THE ELECTRICAL SECTOR EXPANSION
2.6 PLANNING THE PETROLEUM SECTOR EXPANSION

2.1 - GOVERNMENT’S MULTIANNUAL PLAN

The multiannual plan, which is annually updated, is the main government instrument which lists the issues, actions, objectives and goals of the different areas - education, health, transport, energy, communications, etc. - for the next following five years. In the energy sector, the Multiannual Plan includes the main works to be completed or started with resources from the Federal Government in the electricity and petroleum areas, such as : hydroelectric and thermal power plants, transmission and distribution lines, petroleum and natural gas exploration, refineries, natural gas plants, gas pipelines, multipurpose pipelines (polidutos), etc. as well as the respective goals to be attained.

With the elimination of monopolies and the privatization of the energy sector underway, the state has available more resources to be applied in typically social areas (public sanitation, health and education). Therefore, the Multiannual Plan is less and less representative of the total investments in the energy areas.

2.2 MANAGEMENT OF THE BRAZILIAN ENERGY SECTOR

The Ministry of Mines and Energy - MME, created in 1960, is the entity directly linked to the Presidency of the Republic responsible for the management of the Brazilian energy sector and is accountable to promote the adequate supply of energy in the country.

2.3 PLANNING OF THE ENERGY SECTOR EXPANSION

The Ministry of Mines and Energy along its existence and according to its responsibility has oriented the Brazilian energy development in the different portions: physical, economic (prices and tariffs), environmental, social, technological, regulatory and institutional aspects. In this direction, the MME has also coordinated and conducted several energy prospective studies, contemplating: (i) all sources and forms of energy - electricity, petroleum, natural gas, mineral coal, nuclear, biomass, etc.; (ii) the different physical structures of offer, external trade, transformation and final consumption of energy, and (iii) the policy guidelines for each energy area. These studies have received different denominations: " BRAZILIAN ENERGY MATRIX" , BRAZILIAN ENERGY MODEL’, REEXAMINATION OF THE NATIONAL ENERGY MATRIX’ etc. and have been put as "Indicative Instrument" for the expansion of energy supply and use.

In the present document, the set of studies previously mentioned will be denominated " INTEGRATED ENERGY PLANNING" -IEP. So, in what follows, the main MME experiences in IEP are mentioned.

The first IEP experience in the country occurred at the start of the seventies, when MME together with the Planning Ministry started the execution of the project called " Brazilian Energy Matrix - BEM". Due to the new "economical order", imposed by the first petroleum crisis in 1973, this project was closed, and no partial results have been openly presented. In the concluded studies there is the consolidated energy matrix of 1970 ( comparable to the present energy matrices of the Brazilian Energy Balance), demonstrating a large effort of data collecting, which permitted to identify the different physical relations among offer, transformation and use foe each energy source. The studies have also the projected matrices for the years 1975, 1980 and 1985, which became innocuous due to the new conditional situation. that followed.

Other prospective energy studies, with a global energy perspective, occurred with the official institution of the Brazilian Energy Balance - BEB, in 197?. In the period from 1976 to 1979, the BEB presented statistics of the previous ten years and prospective data concerning the next following ten years. The projections were made based on the expansion plans of the electrical and petroleum sectors. Still in 1975, it was created the Alcohol National Program as well as the conditions for a larger participation of mineral coal in the Brazilian energy matrix.

In 1979, with the second petroleum crisis, the Brazilian Energy Model - BEM - was instituted, with different characteristics as compared to the previous studies, since it was an instrument of energy policy based on goals to be attained until 198?. The main objective was the reduction of energy dependency on petroleum which was 85% at that time and had much weight in the balance trade of the country. So, the BEM established a series of goals for petroleum production, demand of petroleum products, mineral coal, alcohol, fuel wood and charcoal production, besides the goals for conservation and electrical heating systems (ELETROTERMIA).

Most of these goals were attained, which reduced the external dependency to 43%.With the creation of BEM, the BEB stopped publishing energy prospective data. In 1990, another experience occurred in the IEP area with the creation of the "Reexamination of the Brazilian Energy Matrix" project. The results were published in 1991, contemplating a series of policy guidelines for each energy area, as well as some physical data about offer and demand of energy for the years 1995, 2000 and 2010.

2.4 SECTORIAL ENERGY PLANNING - SEP

Due to the characteristics of the Brazilian energy sector until recently: (i) with heavy participation of the state in production and distribution activities, (ii) with practically captive markets and (iii) with actions in one energy area having little interference in other energy areas, the planning of electrical and petroleum sectors were guided by strong interdependence, with little or no communication at all between the parts.

With the restructuring of the sector underway - where it will predominate the participation of the private sector, in an environment of free competition among a large number of generating and distributing enterprises and with larger diversification of energy offer, including interconnection with other countries - the INTEGRATED ENERGY PLANNING becomes a practically indispensable instrument for investment decision-making in energy undertakings.

2.5 PLANNING THE ELECTRICAL SECTOR EXPANSION

Brazil has some peculiar characteristics that require an adequate planning for electrical generation: (i) complex institutional organization due to its extension, regional differences and the necessity of private and public agents participation; (ii) predominant hydroelectric system, with large reservoirs of multiannual regulation; (iii) long distance transmission systems from the generating plants to the main consuming centers; (iv) possibility of inter-regional connections, taking advantage of hydrological diversity between basins: and (v) large potential for developing thermal generation. As a function of these peculiarities and of the maturation periods of the projects and studies preceding their conception, the planning of the national electric system expansion is developed in three levels, namely:

Long Term Studies - they span a period of up to 30 years. One aims at analyzing the development strategies for the electrical system, the future composition of the set of generating plants, the main branches and transmission systems, establishing a program for technological and industrial development and for hydrographic basins inventory. The guidelines for medium and short term studies are defined and the marginal costs of long term expansion are determined. The conditions for these studies are the evolution of the market, the availability of primary energy sources for generation, the tendencies of the technological evolution and the environmental impacts of the projects. Their periodicity is 5/6 years and they are the basis for elaborating the Electrical Energy National Plans.

Medium Term Studies - they span a period of 15 years. Reference generation and transmission programs are established and the financial resources, service demand, plant construction, electrical systems (transmission lines and substations) and equipment are estimated. Programs for plants viability studies are formulated and the sites of future thermoelectric units are analyzed.

The conditions for these studies are market supplying at minimum cost, the environmental viability of the undertakings, continuity of the works program and the adequate sequential exploitation of the hydroelectric potential. Their periodicity is 10 years.

Short Term Studies - they span a period of 10 years. Decisions relative to generation and transmission expansion are presented, the undertakings and their time are defined, are made of conditions of market supply are analyzed and the marginal costs of expansion are calculated. Distribution programs are defined, with physical and financial goals, as well as the global program of investments for generation, transmission, distribution and general installations.

The conditions of these studies are the market requirements for the different subsystems, the time necessary for implanting the undertakings and the financial capacity of the electrical sector. The participation of the private sector is also considered as independent producers, as self-producers or in consortia for the construction of hydroelectric and thermoelectric plants. Their periodicity is one year and it produces the Decennial Plan for Expansion of the Electrical Sector. In general , the Decennial Plan studies consider four macroeconomic scenarios, one of which is adopted as "reference".

It is responsibility ELETROBRAS, a mixed economy enterprise subordinated to the Ministry of Mines and Energy, to coordinate the expansion planning and the operation of the Brazilian electrical systems. In this context, in 1982 was created the Coordinating Group for Electrical Systems Planning - CGESP, an association composed of 35 concessionaires aiming at promoting the long, medium and short term studies previously mentioned, under the coordination of ELETROBRAS. In this way, the CGESP is the forum where the sectorial planning is articulated and coordinated, through an annual cycle of studies, with the elaboration of expansion programs.

CGESP’s basic structure includes for each geo-electric region a Board Committee (BC), a Technical Committee for Market Studies (TCMS), a Technical Committee for Energy Studies (TCES), a Technical Committee for Transmission Studies (TCTS), a Commission of Investments Program in Distribution (CIPD), commissions for specific matters and working groups. An Executive Secretary supervises the activities and gives support to all CGESP’s organs.

2.6 - PLANNING THE PETROLEUM SECTOR EXPANSION

The basic methodology for forecasting used until the seventies by PETROBRAS - Petróleo Brasileiro S.A, an enterprise subordinated to the MME, was based on the hypothesis that the future could be foreseen by analyzing the past. Up to that time, this formulation was relatively successful due to the stability observed in the political, economical and technological conditions of that time.

The acceleration of changes, mainly starting at the second petroleum crisis of 1979, altered in a definitive way this position, as far as it introduced discontinuities and transformations, putting in evidence the high degree of incertitude of the modern world.

The forecasting methodology that was internationally adopted and also in the country for medium and long term spans was that of scenarios construction.

It aims at representing alternative futures for a system or context. The main characteristics of this methodology of macro-scenarios are: global perspective of reality, since it establishes interdependence among the different dimensions and their agents; the future is conceived as the basic motivation for actions and decisions of the present, in a plural vision; it considers the political dimension as a strong conditional factor of the future, as changes do not occur by chance but are a result of interplay of alliances and conflicts of groups and/or institutions participating in each situation.

Since 1987, PETROBRAS has been developing efforts for constructing international and national macro-economic scenarios aiming at giving support to decisions concerning the expansion of petroleum production, refineries, etc. As a general rule, the prospective studies undertaken by PETROBRAS take into account two or more international scenarios

and three or more national ones.

After evaluating the macro-scenarios, based on plausibility criteria, a Reference Scenario is chosen for elaborating the Plan and Programs of the Sector, when short term ( spanning from 2 to 3 years) and long term (spanning 10 years) propositions are formulated.

Economy and Energy
Year  II - N° 8
May/June/1998

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Graphic Edition:
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Revised:
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BRAZILIAN ENERGY SECTOR

1 - INSTITUTIONAL ORGANIZATION

2 - CHARACTERISTICS OF THE EXPANSION PLANNING OF THE BRAZILIAN ENERGY SECTOR

3 - MACRO-ECONOMIC AND ENERGY SITUATIONS

4 - IDENTIFICATION AND ANALYSIS OF ENERGY INTEGRATION STRATEGIES

ANNEX 1:
REPRESENTATIVE ENTITIES IN THE BRAZILIAN ENERGY AREA

3 - MACRO-ECONOMIC AND ENERGY SITUATIONS

3.1 INTERNATIONAL SITUATIONS
3.2 REGIONAL SITUATION - MERCOSUL
3.3 NATIONAL SITUATION

3.1.INTERNATIONAL SITUATIONS

The globalization process in the world market is underway, with growing cooperation among countries aiming at reaching common strategic objectives. The main trade flux occurs among the developed countries, while the remaining countries profit from their competitive advantages aiming at a larger participation in the international market.

The world economy will grow at an average rate of 3% annually until the year 2010, developed countries growing 2.8% annually and the developing ones, 4.5% annually. The international trade grows at an average rate of 5% annually with larger political integration and economic complementariness among the countries.

The international labor division is characterized in developing countries by the domination of processes, production and product phases, and advanced technology. To developing countries are assigned processes, production and products phases of mature technology and some of these countries have access to the technological threshold in specific segments. In these countries are located the production of energy-intensive and traditional materials goods and those of greater environmental impact. Environmental concerns have consolidated as a relevant factor in international relations.

The determining factors of international competitiveness are: technological research and development, manpower qualification and use of new materials, emphasis on the educational structure and integration of international telecommunications / informatics (TELEMATICA) networks in the productive process.

The relationship between energy demand and GNP growth is invalidated due to efficiency gains in the production and use of energy. Conservation is a prior component in investment programs, due to the scarcity of financial resources, specially in developing countries and considering also the aspects of better quality of products through the adequacy of equipment and use of new technologies, resulting in benefits for environment preservation. Petroleum price continues as the directive vector of energy prices and should not present real increase above 20% in the studied period. This price level is no incentive to the generalized development of alternative energy sources. This set of premises produces alterations in the profile of the world energy matrix. Mineral coal maintains its participation as a consequence of its use in thermoelectric plants, specially in producing regions. Natural gas has a more significant participation due to the increase of its availability in the international market and its characteristics of reduced environmental impact.

3.2 REGIONAL SITUATION - MERCOSUL

MERCOSUL establishes itself with new rules for conducting the integration process. The Free Trade Zone and the Custom Union in the region are consolidated. In the energy area, agreements and contracts in force follow their course and important agreements aiming at larger electrical and natural gas interconnection and larger commercial exchange of liquid fuels are signed.

3 - NATIONAL SITUATION

The country consolidates its stabilization program mainly by implanting administrative, taxing and social security reforms, with positive consequences on the public deficit control. As a result, restrictions to growth, with elevated real interest rates can be administered. Furthermore, the continuation of the privatization program and the administration of the internal demand contribute to maintain inflation under control. The balance of payment deficit is also equalized by the incoming foreign capital, made favorable by the stability. With these conditions, recuperation of investment rate is expected. The State directs part of its resources to the construction and modernization of basic infrastructure and for the typical social spending (education and health). The agrarian reform is implanted in a gradual form and education is revised aiming at preparing manpower in all its levels in order to better adequate the country to the modernization process. The energy policy tends to a greater intersectorial and regional articulation, in a new institutional context, with greater participation of private capital. The national energy demand presents lower increase relative to the GNP, resulting from energy conservation policy, reduction of relative participation of energy-intensive sectors due to the influence of new technologies, which reduce energy intensity.

The renewal of car and truck fleets and the process of intermodal transport consolidation underway made also possible the incorporation of efficiency gains, attenuating the consumption growth of gasoline, alcohol and diesel oil.

With rising energy demand, the privatization process continues to be competitive due to the attractiveness of the energy industry, strengthened by real price policies. There is also a larger participation of natural gas thermal plants in electricity supply, as well as a greater participation of self-producers and a larger participation of natural gas in the final consumption of energy in the country. Therefore, in the scenario chosen as reference, the GNP increases at an average annual rate of 4.3% until the year 2000 and 5% until 2010, going from US$ 775.4 billion in 1996 to US$ 1,494.7 billion in 2010 (constant dollar of 1996). The Primary and Secondary Sectors present small participation reduction relative to the Tertiary Sector. The population reaches 184 million inhabitants in 2010 ( average increase of 1.103% annually), of which 83% in the urban area ( in 1996 it was 77%). The GNP per capita reaches US$ 8,120 per inhabitant as compared to US$ 4,914 in 1996.

 

Economy and Energy
Year  II - N° 8
May/June/1998

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Graphic Edition:
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BRAZILIAN ENERGY SECTOR

1 - INSTITUTIONAL ORGANIZATION

2 - CHARACTERISTICS OF THE EXPANSION PLANNING OF THE BRAZILIAN ENERGY SECTOR

3 - MACRO-ECONOMIC AND ENERGY SITUATIONS

4 - IDENTIFICATION AND ANALYSIS OF ENERGY INTEGRATION STRATEGIES

ANNEX 1:
REPRESENTATIVE ENTITIES IN THE BRAZILIAN ENERGY AREA

 

4. IDENTIFICATION AND ANALYSIS OF ENERGY INTEGRATION STRATEGIES

Since 1995, Brazil is firmly reformulating the energy sector, opening new opportunities for the participation of the national and international private sector in the necessary investments and in the responsibility of guarantying the national energy supply.

In the electrical energy area, the Laws 8,987 and 9,074/95 ( new Concession Laws) introduced deep and important changes, specially :(i) procurement of new generation undertakings; (ii) creation of the Independent Energy Producer entity; (iii) free access to transmission and distribution systems; and (iv) freedom for large consumers to choose their energy suppliers.

In the petroleum area, with the approval of Law 9,478 of 08/06/1997, all segments of the sector were open to competition and PETROBRAS is not the sole executor of the Union’s monopoly any more.

As regulating agencies of the electrical and petroleum sectors, the National Agency of Electrical Energy - ANEEL and the Petroleum National Agency - ANP were created, respectively , by the Law no 9,427 of 12/26/96 and Law no 9,478 of 08/06/97.

In order to formulate policies and guidelines, it was instituted the National Council of Energy Policies - CNPE ( Law no 9,478 of 08/06/97), chaired by the Minister of Mines and Energy and aiming at promoting the rational exploitation of the energy resources of the country according to the applicable legislation and the following principles: preservation of the national interest; promotion of sustainable development; enlargement of the employment market and valuation of the energy resources; protection of consumers’ interests in what concerns prices, quality and product offer; environment protection and promotion of energy conservation; guaranty of supply of petroleum products in the national territory; increase of natural gas use; identification of the more adequate solutions for electrical energy supply in the different regions of the country; use of renewable energy sources through the use of available input and applicable technologies; promotion of free competition; attracting investments for energy production; amplification of the country’s competitiveness in the international market; assure, as a function of the regional characteristics, the supply of energy input to the most remote or hardly accessible areas of the country, submitting the specific measures to the National Congress, when they imply the creation of subsidies, observing the only paragraph of Article 73 of Law 9,478 of 1997; revise periodically the energy matrix applied to the several regions in the country, considering the conventional and alternative sources and the available technologies; establish guidelines for specific programs such as the use of natural gas, alcohol and other biomass, mineral coal and nuclear energy; establish guidelines for imports and exports in order to supply the needs of petroleum and its products internal, natural gas and condensed natural gas (CONDENSADO) consumption, and assure the adequate operation of the National System of Fuels Stockpiles and follow the Annual Plan of Fuels Strategic Stockpiles, according to Article 4 of the Law 8,176 of 02/08/1991.

As Brazil advances its program aiming at reformulating the energy sector, there are growing opportunities for physical integration with the energy systems of neighboring counties as well as capital integration. Concerning this matter, the most representative facts are mentioned in what follows:

a) the electricity distribution market in 1997 recorded 31% of private sector participation as opposed to a practically no participation in 1995 - this was due to the privatization of ESCELSA, LIGHT, CERJ, COELBA, CEEE (partial), CPFL, ENERSUL, CEMAT, ENERGIPE and COSERN, with the input of national and international capital.

b) several projects for integration with other countries are confirmed, as follows: continuation of implantation of the Bolivia-Brazil gas pipeline and contracts for installation and assembling of the branching portion from Rio Grande (Bolivia) to Guararema (SP) are signed and its conclusion is foreseen for the end of 1998 - the portion down to Rio Grande do Sul will be concluded one year later; the agreement signed among PETROBRAS, Companhia Estadual do Rio Grande do Sul, Yacimientos Petroliferos Fiscales (YPF-AR), Transportadora de Gas del Norte (AR), Companhia de Gas do Rio Grande do Sul (SULGAS) and AES Energy Ltd from the United States for supplying 2.5 million cubic meters of natural gas to the 450 MW thermoelectric unit to be built in Uruguaiana (RS) and the construction of the 440 km -long gas pipeline from Argentina to the Brazilian border; creation of the Mega SA company, with the participation of PETROBRAS, YPF and the DOW Group to built an unit which will process daily 36 million cubic meters of natural gas in Argentina, aiming at the production of 600 thousand tons per year of LPG (cooking gas) and other natural gas products; agreement between PETROBRAS and Administracion Nacional de Combustibles Alcohol y Portland (ANCP) from Uruguay for exploring natural gas and implantation of grease and lubricant units for commercialization in Mercosul; increase of 1400 MW in ITAIPU’s installed capacity :

c) three undertakings for interconnecting the electrical systems are guarantied and at the end. of 1999 will add. to the generation the equivalent of 1,270 MW. They are (i) Brazil and Argentina - 1,000 MW; (ii) Brazil and Venezuela - 200 MW and (iii) Brazil and Uruguay - 70 MW;

d) other integrating undertakings are planned: increasing in more than 1,000 MW the electrical integration with Argentina; joint use of the Gabari hydroelectric plant in the Uruguay River; some enterprises and consortia are studying the possibility of importing daily up to 57 million cubic meters of natural gas from Argentina through the construction of the 3,000 km-long gas pipeline from Salta (AR) to Parana and Rio Grande do Sul states in Brazil.

 

Economy and Energy
Year  II - N° 8
May/June/1998

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Energy Sector - Institutional Organization
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Graphic Edition:
MAK
Graphic E
dition
marcos@rio-point.com
Revised:
Sunday, 13 December 1998.

http://ecen.com

BRAZILIAN ENERGY SECTOR

1 - INSTITUTIONAL ORGANIZATION

2 - CHARACTERISTICS OF THE EXPANSION PLANNING OF THE BRAZILIAN ENERGY SECTOR

3 - MACRO-ECONOMIC AND ENERGY SITUATIONS

4 - IDENTIFICATION AND ANALYSIS OF ENERGY INTEGRATION STRATEGIES

ANNEX 1:
REPRESENTATIVE ENTITIES IN THE BRAZILIAN ENERGY AREA

 

ANNEX 1:
REPRESENTATIVE ENTITIES IN THE BRAZILIAN ENERGY AREA

1 MANAGEMENT
Ministry of Mines and Energy - MME

2. FOLLOW THROUGH, SUPERVISION AND TECHNICAL SUPPORT
MME’s Energy Secretariat -SEN

3. GLOBAL GUIDELINES FOR ENERGY POLICY
National Council of Energy Policy - CNPE


4 ENERGY SECTOR
4.1 REGULATION
Electrical Energy National Agency - ANEEL

4.2. EXECUTION
4.2.1. Centrais Elétricas Brasileiras S.A. - ELETROBRAS (Government-owned Holding)

4.2.2. Private and State-owned Generation and Distribution Companies
Representing Entities:

Associação Brasileira de Concessionárias de Energia Elétrica - ABCE

4.3. TECHNOLOGICAL DEVELOPMENT
Centro de Pesquisa de Energia Elétrica - CEPEL

5.PETROLEUM SECTOR
5.1. REGULATION
Agência Nacional do Petróleo - ANP

5.2. EXECUTION
5.2.1. Petróleo Brasileiro S. A. - PETROBRAS (State-owned)

1 MANAGEMENT

Ministry of Mines and Energy - MME
Ministry: Raimundo Mendes de Brito
Esplanada dos Ministérios - Bloco "U" - 8º. Andar - Sala 811
70065-900 - Brasília - DF
Tel: (00-55)(61) 223.9059 - 225.4572 - 319.5041 - 319.5043 Fax: (00-55)(61) 226.1866

2. FOLLOW THROUGH, SUPERVISION AND TECHNICAL SUPPORT

MME’s Energy Secretariat -SEN

Secretary: Peter Greiner
Esplanada dos Ministérios - Bloco "U" - 5º. Andar - Sala 544
70065-900 - Brasília - DF
Tel: (00-55)(61) 225.4052 - 319.5160 - 319.5699
Fax: (00-55)(61) 224.8857 - 224.8767

3. GLOBAL GUIDELINES FOR ENERGY POLICY

National Council of Energy Policy - CNPE

Composition:

Ministry of State of Mines e Energy - Chairman and Executive Secretariat Ministry of State of Science and Technology
Ministry of State of Planning and Budget;
Ministry of State of Finance;
Ministry of State of Environment, Hydraulic Resources and the Amazon;
Ministry of State of Industry, Commerce and Tourism;
Secretary of Strategic Affairs of the Presidency of the Republic;
A representative of the States and the Federal District;
A Brazilian citizen, specialist in the energy sector.

4 ENERGY SECTOR

4.1 REGULATION

Electrical Energy National Agency - ANEEL

General Director : José Mário Miranda Abdo
SGAN QD 603 - MÓDULO "J" - Sala 238
70830-030 - Brasília - DF
Tel: (00-55)(61) 321.5158 - 812.5603
Fax: (00-55)(61) 321.5482

Structure :
Directory of Market Economical Regulation and Stimulation of Competition ;
Directory of Relationship with the Market;
Directory of Hydraulic Potential Management;
Directory for the Granting of Concessions and Authorizations;
Directory for Inspection of Generation and of the Quality of Economical - Finacial Service ;
Directory of Technical Regulation and Service Standards;
Directory of Planning the Administrative Management.

4.2. EXECUTION

4.2.1. Centrais Elétricas Brasileiras S.A. - ELETROBRAS (Government-owned Holding)

Presidente: Firmino Ferreira Sampaio Neto
Av. Presidente Vargas 409 - 13º Andar - Centro
20079-500 - Rio de Janeiro - RJ
Tel: (00-55)(21) 224.2112 - 224.2229
Fax: (00-55)(21) 507.8487

Structure:

Directory of Corporative and Financial Management;
Directory of Relationship with the Market;
Directory of Panning and Engineering;
Directory of Systems Operation;
Directory of Administration.

4.2.2. Private and State-owned Generation and Distribution Companies

Representing Entities:


Associação Brasileira de Concessionárias de Energia Elétrica - ABCE
Chairman : Nelson Vieira Barreira
Alameda Campinas 433 - 10º. Andar
01404-901 - Campinas - SP
Tel: (00-55)(11) 288.1166
Fax: (00-55)(11) 288.8524

Associação Brasileira das Empresas Produtoras Independentes de Energia Elétrica - APINE

Director Executivo: César Roland
SCN Q.2 Ed. Centro Empresarial ENCOL - Torre "B"-Sala 622
70710-500 - Brasília - DF
Tel: (00-55)(61) 315.9531
Fax: (00-55)(61) 327.2069

4.3. TECHNOLOGICAL DEVELOPMENT

Centro de Pesquisa de Energia Elétrica - CEPEL

Planning Consulting: José Carlos Costa
Av. Um s/n - Cidade Universitária
21941-500 - Rio de Janeiro - RJ
Tel: (00-55)(21) 598.2267
Fax: (00-55)(21) 598.2459

5.PETROLEUM SECTOR

5.1. REGULATION

Agência Nacional do Petróleo - ANP
General Director: David Zyllbersztajen
SGAN 603 - MÓDULO "H" - Salas 301 a 306
70830-030 - Brasília - DF
Tel: (00-55)(61) 312.5128 - 312.5310
Fax: (00-55)(61) 223.5818 - 226. 0609

and,

Rua Senador Dantas 105 - 12º e 13º Andar - Centro
20031-201 - Rio de Janeiro - RJ
Tel: (00-55)(21) 532.7770 - R.413 e 430
Fax: (00-55)(21) 532.7762 - R.63 e 64

Structure:

04 Directories to be defined;
General Councel ;
Superintendence of Organizational Processes.

5.2. EXECUTION

5.2.1. Petróleo Brasileiro S. A. - PETROBRAS (State-owned)

Chairman: Joel Mendes Rennó

Av. República do Chile 65 - 24º Andar
20035-900 - Rio de Janeiro - RJ
Tel: (00-55)(21) 262.4623 - R. 534
Fax: (00-55)(21) 534.3838


(annex 1 - in Portuguese)

ANEXO 1

ENTIDADES REPRESENTATIVAS DA ÁREA ENERGÉTICA BRASILEIRA

 

1. GESTÃO

Ministério de Minas e Energia - MME

Ministro: Raimundo Mendes de Brito

Esplanada dos Ministérios - Bloco "U" - 8º. Andar - Sala 811

70065-900 – Brasília – DF

Tel: (00-55)(61) 223.9059 - 225.4572 - 319.5041 - 319.5043 Fax: (00-55)(61) 226.1866

2. ACOMPANHAMENTO, SUPERVISÃO E SUPORTE TÉCNICO

Secretaria de Energia do MME - SEN

Secretário: Peter Greiner

Esplanada dos Ministérios - Bloco "U" - 5º. Andar - Sala 544

70065-900 – Brasília – DF

Tel: (00-55)(61) 225.4052 - 319.5160 - 319.5699

Fax: (00-55)(61) 224.8857 - 224.8767

3. DIRETRIZES GLOBAIS DE POLÍTICA ENERGÉTICA

Conselho Nacional de Política Energética – CNPE

 

Composição:

Ministro de Estado de Minas e Energia – Presidência e Secretaria Executiva;

Ministro de Estado da Ciência e Tecnologia;

Ministro de Estado do Planejamento e Orçamento;

Ministro de Estado da Fazenda;

Ministro de Estado do Meio Ambiente, dos Recursos Hídricos e da Amazônia;

Ministro de Estado da Indústria, do Comércio e do Turismo;

Secretário de Assuntos Estratégicos da Presidência da República;

Um representante dos Estados e do Distrito Federal;

Um cidadão brasileiro especialista em matéria de energia.

 

4. SETOR ELÉTRICO

 

4.1. REGULAÇÃO

Agência Nacional de Energia Elétrica – ANEEL

 

Diretor – Geral: José Mário Miranda Abdo

SGAN QD 603 – MÓDULO "J" – Sala 238

70830-030 – Brasília – DF

Tel: (00-55)(61) 321.5158 - 812.5603

Fax: (00-55)(61) 321.5482

Estrutura:

Diretoria de Regulação Econômica de Mercado e Estímulo à Competição;

Diretoria de Relações com o Mercado;

Diretoria de Gestão de Potências Hidráulicas;

Diretoria de Outorgas de Concessões e Autorizações;

Diretoria de Fiscalização da Geração, Qualidade do Serviço Econômico-Financeiro;

Diretoria de Regulação Técnica e Padrão de Serviços;

Diretoria de Planejamento de Gestão Administrativa.

 

4.2. EXECUÇÃO

4.2.1. Centrais Elétricas Brasileiras S.A. - ELETROBRAS (Estatal – Holding)

Presidente: Firmino Ferreira Sampaio Neto

Av. Presidente Vargas 409 – 13º Andar – Centro

20079-500 – Rio de Janeiro – RJ

Tel: (00-55)(21) 224.2112 – 224.2229

Fax: (00-55)(21) 507.8487

Estrutura:

Diretoria de Gestão Corporativa e Financeira;

Diretoria de Relações com o Mercado;

Diretoria de Planejamento e Engenharia;

Diretoria de Operação de Sistemas;

Diretoria de Administração.

4.2.2. Geradoras e Distribuidoras Privadas e Estatais

 

Entidades Representativas:

Associação Brasileira de Concessionárias de Energia Elétrica - ABCE

Presidente: Nelson Vieira Barreira

Alameda Campinas 433 – 10º. Andar

01404-901 – Campinas - SP

Tel: (00-55)(11) 288.1166

Fax: (00-55)(11) 288.8524

 

Associação Brasileira das Empresas Produtoras Independentes de Energia Elétrica - APINE

Diretor Executivo: César Roland

SCN Q.2 Ed. Centro Empresarial ENCOL – Torre "B"-Sala 622

70710-500 – Brasília - DF

Tel: (00-55)(61) 315.9531

Fax: (00-55)(61) 327.2069

 

4.3. DESENVOLVIMENTO TECNOLÓGICO

Centro de Pesquisa de Energia Elétrica – CEPEL

 

Assessoria de Planejamento: José Carlos Costa

Av. Um s/n – Cidade Universitária

21941-500 – Rio de Janeiro – RJ

Tel: (00-55)(21) 598.2267

Fax: (00-55)(21) 598.2459

 

5. SETOR DE PETRÓLEO

 

5.1. REGULAÇÃO

Agência Nacional do Petróleo – ANP

Diretor – Geral: David Zyllbersztajen

SGAN 603 - MÓDULO "H" – Salas 301 a 306

70830-030 – Brasília – DF

Tel: (00-55)(61) 312.5128 - 312.5310

Fax: (00-55)(61) 223.5818 - 226. 0609

e,

Rua Senador Dantas 105 – 12º e 13º Andar – Centro

20031-201 – Rio de Janeiro – RJ

Tel: (00-55)(21) 532.7770 – R.413 e 430

Fax: (00-55)(21) 532.7762 – R.63 e 64

Estrutura:

04 Diretorias a serem definidas;

Procuradoria-Geral;

Superintendência de Processos Organizacionais.

    1. EXECUÇÃO

5.2.1. Petróleo Brasileiro S. A. - PETROBRAS (Estatal)

Presidente: Joel Mendes Rennó

Av. República do Chile 65 – 24º Andar

20035-900 – Rio de Janeiro – RJ

Tel: (00-55)(21) 262.4623 - R. 534

Fax: (00-55)(21) 534.3838