August, 2018

WIND ENERGY OVERVIEW

AND VARIABILITY CONTROL

Elbia Gannoum - ABEEólica

Ou

rM

emb

ers

2

BRAZILIAN ELECTRIC MATRIX (GW)

Source: ANEEL | ABEEólica 3

82% Renewable

18% Non

Renewable97,0861%

14,659%

13,429%

5,103%

13,008%

9,866%

3,723%

1,991%

Hidrelétrica Biomassa Eólica PCH Gás natural Petróleo Carvão mineral NuclearHydro BiomassBiomass Wind SHC Natural Gas Oil Coal

4

Evolution of the Installed Capacity

27,1 235,4 245,6 341,4 600,5 931,41.527,8

2.521,7

3.476,8

5.972,3

8.726,1

10.740,0

12.767,0

14.413,215.753,7

16.144,9

17.658,9

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.00020

05

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2022

Nova(MW)

Acumulada(MW)

Source: ANEEL | ABEEólica

New Accumulated

5

Wind Capacity by State

Installed Capacity

13.42 GW (534 plants)

Capacity under construction

4.24 GW (176 plants)

Total

17.65 GW (710 plants)

8 5280

137

15

34

1

111

1

1

14

80

11.31

GW

2.07

GW

220,8

1.443,1

2.049,9

3.722,5

156,9

781,3

34,5

2.907,6

28,1

2,5

238,5

1.831,9

95,0

912,9

187,2

809,9

281,4

82,0

2.639,2

52,5

315,8

2.356,0

2.237,1

4.532,4

438,3

863,3

5.546,8

1.884,4

MA

PI

CE

RN

PB

PE

SE

BA

RJ

PR

SC

RS

Source: ANEEL | ABEEólica

Investments (US$ bi)

1,9

5,1

3,8

3,0

5,34,9

4,4

3,625,3%

49,3% 46,0%

68,3% 68,0%72,8%

77,0%

57,6%

2010 2011 2012 2013 2014 2015 2016 2017

Eólica Representatividade

Representativeness in relation to investments in renewables

Source: BNEF | ABEEólica 6

Wind Representativeness

History of Energy Auctions

Source: CCEE 7

BRAZILIAN WIND POTENTIAL

Source: Atlas Eólico Brasileiro - 2013 8

World Capacity Factor 2016

Brazil has the world’s highest Capacity Factor

It is 70% higher than the world average

20%

33%

19% 19%

24%

29%

21%

27%

42%

22%24,7%

China EUA Alemanha Índia Espanha Reino Unido França Canadá Brasil Itália

9Source: MME | ABEEólica

China US Germany India Spain UK France Canada Brazil Italy

World

Average

Source: ONS | MRTS | ABEEólica 10

General Characteristcs of Wind Energy

Brazil has one of the world’s

best wind profiles

✓ Constant wind (no big bursts)

✓ Strong and high speed wind

✓ Unidirectional (Northeast)

Northeast – RN South – RS

Storage

National System

Technological Systems

Managing Variable Sources

We have an abundance of

complementary resources

Hydro (reverse seasonality)

Solar PV

Biomass

Wind (aggregation)

Source: ONS | MRTS | ABEEólica 11

12

Records of Wind Energy Generation

23/07/2018

7,062 MWmed

72% of the northeastern demand

Capacity Factor of 71%

13/07/2018

6,558 MWmed

65% of the northeastern demand

Capacity Factor of 67%

Fonte: ABEEólica | ONS

Benefits of Wind Energy

Renewable, nonpolluting energy. No CO2 emissions during generation. Contributes to

Brazil’s part on the Climate Agreement

One of the best cost-benefit on energy tariffs. In recent auctions, wind energy has been

the lowest priced energy source.

Income generation: approximately 4,000 families receive more than R$ 10 million

monthly for land leases

Coexistence with other activities, such as agriculture and cattle breeding

Training of local manpower

15 Jobs for every installed MW

More than 190 Thousand Jobs until now

• 1

14

Wind Energy Indexes and Benefits (2017)

Source: ABEEólica | CCEE | BNEF 14

22 million housessupplied monthly,

on average

20 million tons of CO2

avoided

Systemic gains: Supplyto Northeastern Market

42 TWh of energy generated

US$ 3,5 billion were investedin the wind sector

Source: Instituto Totum15

15

Annual history of RECs transacted in Brazil

1 REC = 1MWh

EnergyGenerator

ElectricalEnergy

Social and Environmental

Attributes

Certification of Renewable Energy

THANK YOU!

Elbia Gannoum

elbia@abeeolica.org.br

CONTACT US