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.

NEOENERGIA COMERCIALIZAÇÃO

Neoenergia Group offers a diversified portfolio of energy products and solutions for a broad range of customers, through its subsidiary Neoenergia Comercialização.

The company has started its activities under the name of NC Energia in 2001, developing customized solutions intended to the free energy market – an environment where companies may choose their suppliers and freely trade volumes and prices of electric energy.

With Elektro absorption, in 2017, Elektro Comercializadora has joined the group, and the company was renamed as Neoenergia Comercialização. The merger has added to Neoenergia around 119 MW average to the company’s portfolio, in 2018, and incorporated the segments of Photovoltaic Distributed Generation and Engineering and Construction into the Group’s portfolio.

In the Distribute Generation segment, the company operates in the integration of solar energy systems to micro- and mini-generation, from the project design to the structure installation and solar plant commissioning, creating sustainable solutions for residential, commercial and industrial customers. As of the end of 2018, 418 customers were supplied with photovoltaic systems by the Group.

In the area of Engineering and Construction, the trader operates in all steps related to energy infrastructure of projects, such as the construction of substations and transmission lines. The company works from the project design to the final stages of works and construction management.

Neoenergia Comercialização also provides specializing service to the various market segments, including further services related to the management and trading of electric energy.