Performance

Neoenergia is an integrated energy company which operates in the four segments of the electricity sector: generation, transmission, distribution and trading. The focus is on distribution, supported by generation, transmission and trading activities. In this way, it aims to maintain and expand standards of quality and performance.

 

Atuacao

Distribution and Transmission

Our four distribution subsidiaries provide power to a total of 13.9 million customers in the states of Bahia, Pernambuco and Rio Grande do Norte, and part of the states of Paraíba (one municipality), São Paulo (223 municipalities) and Mato Grosso do Sul (five municipalities), covering a population of more than 34 million people (base date dec/ 18). In the first quarter of 2019, we sold 14.8 GWh of electricity in our companies: Coelba, Celpe, Cosern and Elektro, through more than 600 thousand kilometers of distribution networks.

We also operate in the transmission of electric power, which includes the operation and maintenance of transmission lines and substations with a voltage equal to or greater than 230 kV and which are part of SIN – National Interconnected System. The remuneration of these assets is made through an Permitted Annual Revenue Permitted (PAR) established by ANEEL and the result of the Transmission Auctions, which are paid by all SIN users, both generation and cargo. Currently, 679 km of transmission lines and 11 transmission substations located in the states of Bahia, Paraíba and Rio Grande do Norte are operating through Afluente T, Narandiba and Potiguar Sul. With the incorporation of Elektro Holding, on August 24, 2017, we added 578 km of new transmission lines to our electric grid and 10 transmission substations, one owned and nine shared, located in the states of Mato Grosso do Sul, São Paulo , Santa Catarina and Ceará, and which were sold at the Transmission Auction held by ANEEL in April 2017. In 2017, Neoenergia was once again winner in Auction n. 002/2017 -ANEEL when it acquired two new concessions – Lots 4 and 6 – of electric power transmission, which together comprise 4 transmission lines (1,074 km) and 6 substations, one owned and five shared, located in the States of Tocantins, Piauí, Bahia, Ceará and Paraíba.

In December 2018, at Auction n. 004/2018-ANEEL, in another successful participation Neoenergia won 4 new lots (1, 2, 3 and 14) corresponding to 3,000 km of future circuits, 5 new substations and 16 extensions. Thus, among assets in operation and under construction, we have a total portfolio of 5,332 km of transmission lines and 49 transmission substations. Consolidating, therefore, the auctions that took place in 2017 and 2018, Neoenergia obtained an additional 4,653 km in transmission lines, R$ 788 million in PAR and R$ 8.8 billion in CAPEX (ANEEL), considering the historical amounts involved.

Generation

We operate in both conventional and renewable energy generation. Our renewable energy generation business has a total of approximately 3.2 GW in commercial operation, with 2.7 GW of hydroelectric energy, 0.5 GW of wind energy, and 532.8 MW in operation through a power plant natural gas. By the end of 2019, it is expected that the Company will have approximately 4.0 GW in operation, with the entry of the last Belo Monte generating units, corresponding to 367 MW, considering the Company’s ownership interest in the asset.

We have an installed and operating capacity of 516 MW of wind power, operated through 17 wind farms. Our hydroelectric plants have more than 2.7 GW of installed capacity in operation, owned by the Teles Pires, Itapebi, Dardanelos, Baguari, Corumbá III, Baixo Iguaçu and Belo Monte (partially operating) hydroelectric plants . Together with our projects under construction, which comprise our participation in the Belo Monte hydroelectric plants, we intend to achieve by the end of 2019 a total installed capacityof more than 3.0 GW from hydroelectric plants.

We also have a conventional combined cycle gas-fired power plant, the Termopernambuco thermoelectric plant (Termope), located in the State of Pernambuco, with 532.8 MW of installed capacity in operation, which has a power supply contract (PPA – Purchase Power Agreement) of 455 average MW, valid until December/2023. In the fiscal year ended December 31, 2018, Termopernambuco TPP generated 413.49 average MW of gross electricity.

Trading

With the merger of Elektro, on August 24, 2017, NC Energia also merged with Elektro Comercializadora. Elektro Comercializadora currently negotiates around 17 average monthly MW and added to Neoenergia in 2018, about 119 average MW. In 2018 we commercialized approximately 1,469 average MW of energy in the free market.

In addition to the actual trading activities, our energy sales company also provides a wide range of services such as integrated energy management, risk management, representing of consumers and generators with CCEE, and making our energy projects feasible.

We also provide services involving energy management to both our affiliated companies and non-affiliated parties.