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TRACTEBEL ENERGIA SUSTAINABILITY REPORT 2014 DOWNLOAD

GRI G4-8 | G4-9

Tractebel Energia is Brazil’s largest private sector electricity generation company. Since 1998, when it started operating in Brazil, it has been engaged in the construction and operation of power plants, including through hydroelectric power concessions obtained in auctions conducted by the Federal Government, permits to operate thermal power plants, small hydroelectric power plants, and wind farms, and registrations to build solar power plants. GRI G4-6

Based on these specifications we operate in the regulated market, consisting of power distributors, and the deregulated market, consisting of deregulated consumers (mostly manufacturing companies), which is subdivided into two groups: conventional energy (for companies with demand in excess of 3.0 MW) and energy with tax incentives (for companies with demand in excess of 0.5 MW that purchase energy from alternative renewable sources, such as biomass, wind power, and small hydroelectric power plants, or SHPPs).

The Company has capital of R$2,445.8 million, represented by 652,742,192 common shares, traded regularly under ticker symbol TBLE3 on BM&F Bovespa’s Novo Mercado. Tractebel Energia also trades Level 1 American Depositary Receipts (ADRs) on the US over-the-counter market, under ticker symbol TBLEY, at a ratio of one ADR for each common share.

Shareholding control of the Company is held by GDF SUEZ Energy Latin America Participações Ltda. (GSELA), which accounts for 68.71% of Tractebel Energia’s capital. GSELA is controlled indirectly by GDF SUEZ, the world’s largest independent energy producer, with installed capacity of 115.3 GW, which operates in the entire electricity and natural gas energy value chain. GRI G4-5

Tractebel Energia operates in the regulated market, consisting of power distributors, and the deregulated market, consisting of free consumers

Shareholding control
(as at December 31, 2014)

Gráfico Controle acionário

Corporate structure

Tractebel Energia is the controlling shareholder of Companhia Energética Estreito, Lages Bioenergética Ltda., Tractebel Energias Complementares Participações Ltda., Usina Termelétrica Pampa Sul S.A. and Tractebel Energia Comercializadora Ltda. The latter is responsible for intermediating and managing purchases, sales, imports and exports of electric energy in the deregulated market.. GRI G4-3 | G4-7

The Company also holds the following stakes in consortiums, concessionaires of generating plants: (i) 19.28% in the Machadinho Consortium, which is responsible for operating the Machadinho Hydroelectric Power Plant; (ii) 40.07% in the Estreito Energia Consortium (Ceste), which is responsible for operating the Estreito Hydroelectric Power Plant; and (iii) 72.90% in the Andrade Consortium, which is responsible for operating the Ibitiúva Bioenergética Thermal Power Plant, by means of the indirect subsidiary Ibitiúva Bioenergética S.A., where Tractebel Energias Complementares Participações Ltda. holds 95.00% of the capital.

Tractebel Energia also holds a 48.75% stake in and shared control of Itá Energética S.A. (Itasa). Itasa, in turn, holds a 60.5% stake in the Itá Consortium, which holds the concession for the Itá Hydroelectric Power Plant and in which Tractebel Energia has a direct stake of 39.5%. Adding together its stakes in Itasa and in the Consortium, the Company owns 68.99% of the Itá Hydroelectric Power Plant. Shared control of Itasa is governed by a shareholders’ agreement, and decisions of common interest of the Itá Consortium are taken by a management committee, comprising four members, two of which are representatives of Tractebel Energia.

Simplified organization chart
(as at December 31, 2014)

Organograma societário  simplificado

Generation facilities

At the end of 2014, Tractebel Energia has an installed capacity of 7,027.2 MW, equivalent to 5.7% of the total installed capacity in Brazil.

Its generation facilities comprise 27 power plants, including nine large and medium-sized hydroelectric plants, five thermoelectric plants, and 13 complementary plants: three small hydroelectric power plants (SHPPs), six wind farms, three biomass and one solar photovoltaic. The Company operates all of these plants and fully controls 23 of them. In the remaining four—Itá, Machadinho, Estreito and Ibitiúva Bioenergética—it has a stake as a consortium member. The installed capacity operated by Tractebel Energia at the 27 plants is 8,747.9 MW.

To exploit the generation facilities, the Company holds concessions and authorizations granted by the regulatory body, the details of which are shown below.

Generation facilities and installed capacity of assets in respect of which concessions and authorizations have been granted to Tractebel Energia
(as at December 31, 2014) GRI EU1

1 The plants owned by consortiums have the following total installed capacities, 1,450.0 MW; Estreito, 1,087.0 MW; Machadinho, 1,140.0 MW; and Ibitiúva, 33.0 MW. Therefore, the installed capacity operated by Tractebel Energia at the 27 plants is 8,747.9 MW.
2 Thermoelectric complex comprising three plants.
3 The Alegrete Thermoelectric Power Plant (UTAL) is a fuel oil-fired thermoelectric plant that went into service in 1968. Since the plant is no longer cost-effective, Tractebel Energia made a request to the Brazilian Electricity Regulatory Agency (Aneel) in 2013 to issue a definitive revocation of its operation authorization and its return to the Federal Government.
4 Consisting of four wind farms.
5 For generating plants with installed capacity lower than or equal to 5 MW the legal instrument applicable is the record.
Plants Location Expiration of concession/ authorization Own installed capacity (MW)
       
Hydroelectric power plants
Salto Santiago Rio Iguaçu (PR) 9/27/2028 1,420.0
Itá1 Rio Uruguai (SC e RS) 10/16/2030 1,126.9
Salto Osório Rio Iguaçu (PR) 9/27/2028 1,078.0
Cana Brava Rio Tocantins (GO) 8/26/2033 450.0
Estreito1 Rio Tocantins (TO e MA) 11/26/2037 435.6
Machadinho1 Rio Uruguai (SC e RS) 7/14/2032 403.9
São Salvador Rio Tocantins (TO) 4/22/2037 243.2
Passo Fundo Rio Passo Fundo (RS) 9/27/2028 226.0
Ponte de Pedra Rio Correntes (MT) 9/30/2034 176.1
Total from hydroelectric sources   5,559.7
Thermoelectric power plants
Jorge Lacerda Termoelectric Complex2 Capivari de Baixo (SC) 9/27/2028 857.0
William Arjona Campo Grande (MS) 4/28/2029 190.0
Charqueadas Charqueadas (RS) 9/27/2028 72.0
Alegrete3 Alegrete (RS) - -
Total from thermoelectric sources   1,119.0
Complementary power plants (biomass, wind and SHPPs)
Eólico Trairi Complex4 Trairi (CE) 9/28/2041 115.4
Ferrari Pirassununga 6/27/2042 65.5
Lages Lages (SC) 10/29/2032 28.0
Rondonópolis Ribeirão Ponte de Pedra (MT) 12/18/2032 26.6
Beberibe Beberibe (CE) 8/3/2033 25.6
José Gelazio da Rocha Ribeirão Ponte de Pedra (MT) 12/18/2032 23.7
Ibitiúva Bioenergética1 Pitangueiras (SP) 4/4/2030 22.9
Areia Branca Rio Manhuaçu (MG) 5/2/2030 19.8
Pedra do Sal Parnaíba (PI) 10/1/2032 18.0
Cidade Azul Tubarão (SC) not applicable5 3.0
Total from complementary sources 348.5
Total   7,027.2

Tractebel Energia reached a new record of instantaneous generation in 2014: 8,031.6 MW, equivalent to 93.2% of total installed capacity operated

Breakdown of generation facilities
(as at December 31, 2014)

Gráfico Composição do parque gerado
Tractebel Energia's generation complex comprise 27 power plants, including nine large and medium-sized hydroelectric plants, five thermoelectric plants, and 13 complementary plants



Total production reached 48,942 GWh (5,587 average MW), our new annual generation record, noting that:

  • On November 12 we also broke the instantaneous generation record: 8,031.6 MW, equivalent to 93.2% of total capacity operated by Tractebel Energia;
  • In compliance with the National Electric System Operator (ONS), we obtained the highest historical annual output of the thermoelectric plants: 753.2 average MW, 4.8% above the previous record, reached in 2013;
  • We also reached the highest historical annual output of the complementary plants: 164 average MW, 76.6% above the output for 2013
  • New annual output records of the Estreito Hydroelectric Power Plant, the Lages Cogeneration Unit, and the William Arjona Thermoelectric Power Plant. GRI EU6