> 103-2, 201-4, 203-1, 302-3, 302-4, 302-5, 306-2, 403-2, 403-3,
404-1, 412-1, 417-1, 419-1,EU6, EU7, EU10, EU11, EU12, EU22,
EU23, EU25, EU30 >

Environmental risk management is on the radar of the Company, which has invested in initiatives to protect and recover the environment, mainly of the São Francisco River


> 103-2, 103-3, 303-1, 303-2, 303-3, 306-1, 306-5 >

Almost all energy generated by Chesf comes from hydroelectric plants, and management of water resources follows the Eletrobras Policy, supported by Law 9,433/97. In the hydroelectric generation process, there is no degradation of this resource, since turbine water returns to the body of water without changing its characteristics. However, the Company evaluates and monitors the water quality of the reservoirs under its responsibility, in accordance with legal parameters.

An important action is related to protecting aquatic biodiversity, where Chesf develops the Aquatic Ecosystems Monitoring Program, in the municipalities of Sobradinho (BA), Itaparica (PE/BA), Paulo Afonso Complex (BA), and Xingó (AL/SE). Additionally, in compliance with the environmental conditions established by IBAMA, Chesf carries out programs during the reduced river flow, such as: Water Quality Monitoring, Monitoring of Saltwater Intrusion (mass of salt water that forms at the mouth of the river), and Rescue of Ictiofauna. Stocking with fish of native species in the São Francisco reservoirs, as well as in the Lower São Francisco region, carried out by the Paulo Afonso fishery.

The Company also monitors the rational use of this resource in its facilities and operations, generating monthly information by regional management, which considers local particularities and establishes preliminary goals in areas where meters already exist. A project is still under analysis to gradually increase the number of own meters in the facilities, especially to combat waste and, with this, to promote the reduction of consumption, effluent generation, and business costs. During the year, 112,920 m3 from the public supply network were used and another 82,427 m3 from underground collection.

Regarding disposal of effluents from operational and administrative areas, the Company has its own treatment plants in the projects, or, for units that do not have a treatment plant, domestic effluent is disposed of in the public sewage network. > 103-2, 103-3, 303-1, 303-2, 303-3, 306-1, 306-5 >


2015 94.136,0 35.694,0 126.036,0 27,9
2016 209.963 * 19.221 ** 229.184 50,1
2017 173.456 21.891 195.347 *** 47,4

* In 2016, new measurements were included, which increased consumption compared with the previous year.
** Actually, the information in 2016 was not available and was verified and corrected in the 2017 report.
*** The reduction of total consumption in 2017 occurred due to improvements in the process.


Main water resources management initiatives

Chesf actively participates in discussion forums on the subject of water resources. Some of the main groups are: the National Council of Water Resources (CNRH), the São Francisco River Basin Committee, the Contas River Basin Committee, the Water Resources Council of the State of Alagoas (CERH-AL), the Water Resources Group of ABRAGE (Brazilian Association of Energy Generating Companies), and GTRH of the Eletrobras Companies. Many of the topics discussed in these forums subsidize the definition of actions and procedures for managing water resources, such as:

> Specific procedures to control flooding through the issue of inflow volume forecasts to reservoirs and allocation of holding volume in the reservoirs during the wet season.

> Communication procedures for local communities on river and reservoir conditions during critical events.

> Monitoring, in real time, the information on levels upstream (reservoirs) and downstream of the projects operated by Chesf.

> Georeferenced survey of areas subject to flooding for various levels and flows.

>Compliance with the operating guidelines for the reservoirs that form the National Interconnected System (SIN).

> Survey and monitoring of flow restrictions and levels in the river basins where there are projects in operation by the Company.

> 103-2, 103-3 >


> 103-2, 103-3 >

The year of 2017 was another period in which Chesf’s power generation was influenced by the low rainfall volume in the São Francisco river basin. The crisis, which had already been occurring since 2013, reached its worst point this year, when the main reservoir in the Northeast region, Sobradinho, reached the lowest flow volume at 550 m3 per second (normal volume 1,300 m3). This stimulated the search to diversify the energy matrix by increasing thermal and wind generation, and receiving exchange from other regions of the SIN, which, consequently, reduced dependence on the São Francisco River.

Today, the volume of the Sobradinho reservoir is in the recovery phase. The Company intensified its relationship with nongovernmental entities, communities, water supply companies, and the Government of the four states involved (Pernambuco, Sergipe, Bahia, and Alagoas) to monitor and reduce water withdrawal from the São Francisco River. The partnership evaluated the possibilities of each party involved in re-adjusting its activities and impacts in order to gradually contribute to the recovery of the volume of the river.

Understand how Chesf operates in the São Francisco River basin:



Among the initiatives that aim to mitigate the environmental impacts of Chesf’s projects, we highlight the Social Environmental Action Plan (PAS). The Plan has been developed since 2008, in compliance with the environmental requirements of the Brazilian Institute for the Environment and Renewable Natural Resources (IBAMA), for the renewal of the License to Operate (LO nº 509/2006) of the Paulo Afonso Hydroelectric Complex and renewal of the License to Operate (LO nº 147/2001) of the Hydroelectric Plant - HPP Xingó.

The PAS is a shared environmental management process, with pillars in communication, education and environmental health, in permanent and continuous action idealized by Chesf and constructed in a participatory manner, from the experience with the communities of seven municipalities of the area of influence of the Hydroelectric Complex of Paulo Afonso and Xingó.

In 2017, actions were carried out in four categories, involving over 3,700 people, adults and children, in educational activities in the areas of solid waste, preservation of natural resources, afforestation, and others. The participative social and environmental diagnosis, which also marks the beginning of the construction process of the Xingó PAS this year, involved social players from riverside communities identified within the range of four to six kilometers.

Number of participants -
- Paulo Afonso
Hydroelectric Complex
3.150 67 16 18
Number of participants -
HPP Xingó
- 120 134 253
TOTAL 3.150 187 150 271


In 2017, more than 3,700 people participated in educational activities at Paulo Afonso and Xingó Complex


Global climate change and possible changes in environmental legislation are seen as threats to Chesf’s activities, while at the same time an opportunity to expand its generation from renewable sources. Thus, the Company specifies its strategies regarding climate change in its Declaration of Commitment, which guides practices and planning for the future.

All work is motivated by the Eletrobras Holding, which has developed studies since 2015 on risks and opportunities on this topic in order to assess the impact on the business. The Climate Strategy Working Group (WG3) was created in the Environment Committee, with representatives from all Eletrobras companies, in order to discuss adapting to climate change as a result of the decrease in water availability for generation of electricity and the greater number of more severe weather events that have been affecting the country’s energy sector.

In this sense, Chesf has been investing in diversifying the energy matrix, with generation by wind source, and developing projects for solar photovoltaic generation, guaranteeing energy security when there is a low water level in reservoirs at hydroelectric plants that are part of the National Interconnected System. In addition, regarding risks, Chesf seeks to anticipate potential risks by applying preventive measures, such as recording its Greenhouse Gas (GHG) emissions since 2003, through energy efficiency programs and reduced consumption of fossil fuels by the land fleet.

The Company also develops Clean Development Mechanism (CDM) projects to generate carbon credits, in accordance with the Kyoto Protocol, and recognizes the opportunities arising from voluntary agreements with the emergence of alternative markets for developing projects and marketing carbon credits, when not eligible under the United Nations Framework Convention on Climate Change (UNFCCC) standards. > 103-2, 201-2 >



> 103-2, 201-2, 201-4, 206-1, 419-1, EU21 >

In its organizational structure, Chesf has the Compliance and Risk Management Advisory (APC), which is responsible, among others, for planning and coordinating initiatives for internal controls and integrated risk management, in line with the Risk Management Policy of the Eletrobras Companies.

As a result, the Company seeks to act preventatively regarding the various impacts on its business, including the environmental impacts on its projects. With respect to the management of environmental risks that may affect organizational goals, the intention is to reinforce the responsibility of the business areas to define and implement treatment actions in order to mitigate these risks.

For example, Chesf’s power generation capacity is still concentrated in the use of hydroelectric plants, directly affected by the increase in global temperature. The context of uncertainty regarding the availability of water resources exposes the Company to physical risks, so the topic of climate change has been worked on internally. The impact of climate change on the energy sector as well as possible changes in environmental legislation are among the main threats to the Company’s activities, while at the same time, it has been an opportunity to expand generation from renewable sources.

The Company also invests in technologies to improve environmental management processes in all operations, such as the Reservoir Edge System (SISBORDAS), the Documentation System (SISDOC) and the System to Monitor the Right of Way of Transmission Lines. > 102-11, 201-2 >


Chesf operates in the market under the model of public concessions or authorizations. Thus, there are no ongoing or concluded lawsuits regarding anti-competitive practices, antitrust violations, or monopoly regulation.

However, the fines generated were due to non-compliance identified by the National Electricity Agency (ANEEL), evidenced in the issuance of Notices of Infraction (AI). Regulatory management includes monitoring of changes to legislation by the legislative branch and by ANEEL, Chesf’s participation in the Hearings and Public Consultations of its interest, coordinating the revision and tariff readjustment processes of Transmission and Generation, proposing and monitoring the implementation of measures to promote improved processes in order to comply with regulatory rules and the Company’s defense with ANEEL, especially regarding the issuance of Terms of Notification (TN) and Notices of Infraction (AI) from this regulatory agency.

Fines recorded in fiscal year 2017, resulting from non-compliance with laws and regulations in the social and economic areas, were not significant, based on the criteria established by Chesf (1% of NOR). 9. > 103-2, 103-3, 206-1, 419-1 >


Contingency measures are planned and revised annually. Chesf constantly monitors its operations so that, in any occurrence, Contingency Plans are immediately implemented, which include Fire Safety Plans (PSCI) and an Emergency Assistance Plan (PAE) to assist victims at substations. At the plants, the contingency guide specifies the procedures to be followed in case of flooding, fire, and invasion of facilities, as well as the Area Evacuation Plan (PAA). Every year, simulations are carried out with the participation of the local Fire Department.

Chesf also has in place an Annual Flood Prevention Plan, approved by the National Water Agency (ANA) and the National Electricity Agency (ANEEL). In addition, the Company has manuals for Basin Flood Control at the locations where the main reservoirs operate. When there are significant changes in the flows practiced from the plant reservoirs, Chesf informs the community in the area of influence of the river basins. This information is defined by a System of Information Disclosure of Levels and Defluences, which establishes the contents and recipients of the information so that the appropriate measures may be taken.

Substations and power plants in the National Interconnected System (SIN), under the responsibility of Chesf, also establish actions to preserve the safety and integrity of people. Natural Disaster, Operational Safety, Digital Security, Environmental Disaster, Health and Safety, and Physical Safety plans were prepared. With these procedures, the Company prepares to face serious contingency, through planned actions known to the employees directly affected and throughout the management hierarchy of the facilities. > EU21 >

9 Net operating revenue