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In 2017, Chesf made important achievements in its operations. The proposed goals were reached and the results contributed to further strengthening its assets

Chesf followed the guidelines proposed in the 20172021 Business Plan with investments in generation and in the Transmission Expansion Plan. This year, the Company invested in its hydroelectric plants to maintain levels of continuity and availability, and completed two large generation projects: the Casa Nova II and III power plants. The first is already generating revenue and the second will be in the implementation phase until the beginning of 2018. These projects marked the resumption of Chesf’s investments in developments that had been interrupted.

The projects of the Wind Generation Collector Systems (ICGs) and of the wind farms have also been completed, and large projects for generating solar and wind energy are being planned by the Company. An area was created in the Engineering Department, especially to deal with investments in diversifying the energy matrix. There are three departments focused on wind, solar, and hydroelectric energy that advance beyond studies and begin prioritizing expansion projects for power generation using alternative sources.

Another achievement this year was beginning to receive revenue corresponding to the Basic Network of the Existing System (RBSE), assets that began operations before May 2000 and were still pending. This revenue has allowed investments in the Improvement Plan of the Existing System, which began in 2017 and will continue throughout 2018. One of the actions defined in the Plan is replacing equipment for greater reliability in the substation, transmission line, and telecommunications system.

In total, corporate investments to expand and modernize the Company’s production capacity totaled BRL 898.3 million in 2017. The amount was distributed as follows:


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> Hydroelectric: BRL 19.5 million was invested in hydroelectric plants under concession and under a quota regime, in order to maintain operational levels of continuity and availability to satisfactorily meet demand.

> Wind energy: BRL 236.8 million was invested to complete the implementation of company-owned wind farms Casa Nova II (32.9 MW) and Casa Nova III (28.2 MW), located in the municipality of Casa Nova, Bahia, with energy sold in ANEEL Auction No. 10/2013 (A-5), with delivery deadline May 2018.

> Solar: In 2017, the Company continued developing the studies of two Solar Energy Projects, totaling 230 MWp, to compete in future energy sales auctions. In addition, Chesf has been carrying out measurements in 17 solar monitoring stations, installed in the northeastern semi-arid region, in order to develop its own solar generation projects with photovoltaic and solar thermal technologies.


Throughout 2017, a total of 25 projects were completed, expanding Chesf’s Transmission System by energizing 275 km of lines, as well as six new Substations and reinforcements in facilities, which increased the transformation capacity by 3,135 MVA. Revenues from the transmission system reached BRL 1.18 billion. Accordingly, the Company plans to complete all transmission projects by 2019. .

Some highlighted projects were:

> Completion of all projects associated with the Wind Generation Collector Systems (ICGs), which highlights the completion of ICGs Touros, Igaporã II, Morro do Chapéu II, and Mossoró IV;

> Implementation of SE Igaporã III 500/230 kV, whose connection to the Interconnected System (SIN) was carried out through 230 kV lines, energized in 2015, which were incorporated into Chesf’s assets;

> Completion of two sections of 500 kV lines with 70 km (designed and built by Chesf), which were transferred to the TAESA Transmitter because they were a result of sectioning LT 500 kV Bom Jesus da Lapa II/Ibicoara;


> Completion of reinforcements in service to the metropolitan areas of Fortaleza, Teresina, Aracaju, and Salvador, as well as improved reliability of the region’s entire system;

> The Zebu/Xingó transmission line 69 kV (56.5 km) and the Xingó 69 kV (12.5 MVA) substation were transferred to Energisa-SE;

> The 230 kV Tabocas do Brejo Velho (BA) substation transferred from Enel Green Power to Chesf;

> Completion of three reinforcement projects before the deadline defined by the Regulatory Agency: SE Fortaleza II (installation of 4th autotransformer bank 500/230 kV); SE Pici II (installation of transformer 230/69 kV - 100 MVA on a provisional basis); and SE Piripiri (replacement of TR 69/13.8 kV - 5 MVA with 10 MVA);

> Completion of transmission improvement events, corresponding to six projects to replace grounding transformers and four 69-kV line entrances for power utilities companies.

The following chart shows the annual amounts invested by Chesf in its own assets over the last five years


Growth projection for the sector

According to the ONS-EPE Technical Bulletin, the sector forecast for the years 2017 to 2021 is that consumption in the National Interconnected System (SIN) will increase at an average rate of 3.5% per year, beginning a turnaround in the crisis scenario in the electricity sector, even if the downward trend in prices is still unable to be reversed.


With the Programa de Obras (Construction Program), launched in early 2017, Chesf completed all the electricity transmission projects necessary to distribute the production of wind farms operating in the Northeast. The investments amounted to BRL 636 million, adding to the National Interconnected System (SIN) a total of 2,895 MW, an approximate power to that of the Xingó Power Plant (SE/AL), the Company’s largest.

Completion of the transmission projects of the Shared Generation System (ICGs) include transmission lines and substations, which distribute energy supplying the consumer units connected to the National Interconnected System. Among the most significant are the complex ICG Pindaí II/Igaporã (1,163 MW) in Bahia; ICGs Lagoa Nova (398 MW) and Touros (158 MW), in Rio Grande do Norte; in addition to Ibiapina (153 MW), in Ceará.

Currently, wind power already meets a daily average of 45% of Northeastern demand, which contributes significantly at this time when the conditions of the São Francisco Basin are unfavorable.


In recent years, results have been influenced by the adoption of new practices and management tools to monitor and control operations. Still, the expectation of the Operations Department is that, in 2018, the implementation of SAP interconnected to the Shared Service Center (SSC) will streamline the operation.

As a result of this efficiency work, in 2017, Chesf achieved its best result in operational indicators when compared to the last five years, and recorded the lowest number of system interruptions in the Company’s history.

Specifically for thermoelectric generation at the Camaçari thermal power plant, Chesf adopted an average project efficiency of 30.50% for natural gas or oil operations.


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Chesf’s indicator of Operational Availability in Generation showed a significant improvement in the last five years, as a result of the maintenance actions adopted at the plants.



In the year 2017, Chesf obtained the best historical result of Operational Availability of Transmission Lines, reflecting the quality of services provided.



This indicator shows the discount percentage of the Allowed Annual Revenue (RAP Receita Anual Permitida) of Transmission Functions, due to unavailability of the Basic Network equipment of Chesf’s concessions, according to ANEEL legislation.

The result in 2017 was the second best in the last five years. As a relevant fact, there was a significant increase in the Allowed Annual Revenue (RAP) as of July, due to payment by ANEEL of the indemnification for unamortized cost of assets. In addition, there were discounts of the variable portion related to 2016, which had been suspended in July 2016 by the National Electric System Operator (ONS).



This indicator assesses the capacity of Chesf’s Basic Network to support contingencies without disruption of electricity supply to consumers (loss of load). The chart below shows the continuous trend of improvement over the last five years, which indicates an evolution of the Chesf System (Basic Network), regarding occurrences involving interruption of the electricity supply.



This indicator refers to the number of unplanned shutdowns originating from Chesf’s Basic Network that cause any load interruption in the Chesf System. In 2017, the NEIC-RB showed the best historical result, dropping 24.2% in disconnections compared with 2013. Quantity.



Chesf’s results also stand out in the aspects involving strategy and management, safety, and relationship with the communities surrounding its projects.
Next, see how the Company seeks to achieve excellence in everything it does



This year, a methodology was established for analyzing and selecting expansion projects, involving the areas of Planning, Environment, and Geotechnology integrated into the Projects area. This new approach was used in wind and solar energy projects, allowing for a clearer view of the risks and costs of projects to mitigate their impacts. The basis of the processes is in line with Strategic Planning guidelines, which include the sustainability aspects of the business. Final approval of the projects is carried out by the Operations Department, which evaluates feasibility criteria from a risk and financial return standpoint.

Restructuring the Engineering Department

The restructuring of the planning strategy, with the creation of a project office, was essential to reaching the goal of completing 23 projects in 2017. In the new structure, the Department of Project Implementation (SEE) was created, focused on managing corporate Transmission and Generation projects, as well as the Strategic Project Management Advisory (AEG), focused on the Governance of the Engineering and Construction Department.

All work integrated among the areas, developed since the beginning of the study phase, prioritizes asset management, focusing on regulatory vision in a way that maximizes revenue. This way, the main points addressed by management are: increasing the Company’s competitiveness in the market; optimizing processes; agile decision making; integrating teams; process synergy; opportunity for learning and professional growth; and reducing direct and indirect costs.

It is important to note that, with the above changes, Chesf has sought to raise its efficiency standard in the completion of the projects. The expansion of the electro energy system is the responsibility of the Energy Research Company (EPE), linked to the Ministry of Mines and Energy (MME), in line with its Ten-Year Expansion Plan. Based on projections on energy demand, EPE plans the expansion of electricity supply, according to the availability of new power plant projects and the transmission network needed to distribute this energy, and guides the new auctions with the projects needed to supply the market. Chesf is required by the Ministry of Mines and Energy (MME), in some cases, to provide information that subsidizes the bidding processes for new projects. It is worth noting that the Company is not responsible for the decision-making processes related to energy planning and infrastructure development.


Chesf is attentive to the safety of people in its operations and, in addition to all the work done on the occupational safety of its employees, the company seeks to guarantee the same standards for its supply chain. In 2017, a total of 155 Safety Plans were analyzed in contracts signed between Chesf and contractors. Also, 152 safety audits were carried out, which verified about 30 cases of non-compliance related to occupational health and safety training, culminating in corrective actions for all situations encountered. It is important to clarify that not all contracts analyzed are audited, so a Safety Plan may contain more than one audit.


Chesf seeks a broad understanding of the impacts of its business in the regions where it operates. The Company follows the Social Responsibility Policy of the Eletrobras Companies and the Guidance Manual on Chesf’s Social Projects to guide its operations, planning actions to reduce social inequalities, involve employees in volunteer work, promote recognition and loyalty in customers, and contribute to the residents’ understanding of the importance of the business and its presence in these regions.

Social Responsibility projects are analyzed and selected according to their relevance to the community, to society, and according to the impact of the business on the communities surrounding its projects. Management continues to monitor and periodically audit all projects agreed upon through a terms of partnership and/or agreement.

In 2017, community relations programs and projects in the states of Bahia, Alagoas, Pernambuco, and Sergipe were affected by budget constraints foreseen in the Company’s restructuring. Private social investment resources reached BRL 35.2 million, allocated to the areas of health, food safety, education, and creating jobs and income. Investments in cultural projects through incentive laws amounted to BRL 906,088.

Agricultural development in the Casa Nova region

With the start-up of the Casa Nova wind farm, the social and environmental actions already in place during the construction process were extended to the surrounding area. In 2017, Chesf signed a Cooperation Agreement with the Brazilian agricultural research company, Empresa Brasileira de Pesquisa Agropecuária (EMBRAPA) to develop the project “Development actions for agricultural workers around the Casa Nova (BA) wind farm,” initiated in January 2018.

The project will provide agricultural and livestock knowledge and techniques to producers around the Sobradinho reservoir, in terms of the use of the field, contributing to mitigating environmental impacts, and generating income. All equipment and support structure comes from another project and will be reused at Casa Nova, which demonstrates Chesf’s commitment to optimizing resources.

The partnership foresees that EMBRAPA is responsible for training and implementing the project, while Chesf assumes the financing and monitoring. Through BNDES Social Sub-Credit, the Company will invest most of the financial resources - nearly BRL 1.1 million - over a period of three years, benefitting 82 producers directly and 1,850 producers indirectly. The project also has partnerships with other private and public institutions linked to the agricultural sector.

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