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DONALD TRUMP (expansion)

22/1/2025

The President of the United States, Donald Trump, signed shortly after taking office last Monday, January 20, a series of executive orders and decrees affecting the country's energy transition agenda. Measures such as discontinuing support for offshore wind energy, incentives for electric vehicles, and withdrawing the U.S. from the Paris Agreement. On the other hand, it once again frees up the exploration of the country's entire energy potential, thus allowing the exploration of gas and oil in American territory.

> Learn more in the article “Trump takes a turn in the American energy transition”: https://bit.ly/4juYgfh

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DISTRIBUTORS' RENEWAL TERM (distribution)

22/1/2025

The director general of ANEEL, Sandoval Feitosa, said this Tuesday (21/01) that the agency is working hard to meet the deadline stipulated in the decree with the guidelines for renewing distributors' contracts. The draft of the amendment to the concession contracts went through public consultation, and the process is expected to close on February 25, with the approval of the model document that will be signed by the companies that meet the conditions of the extension.

> Continue reading the article “Aneel expects to approve the renewal term of the distributors in February”: https://bit.ly/3Ci5Rgl

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EXCERPTS FROM THE 143RD EDITION OF VOLTS BY CANALENERGIA — 21/01/2025

22/1/2025

SCHEDULE FOR THE WEEK

Tuesday - 21/01

The first regular public meeting of the ANEEL board of directors in the year 2025, beginning at 9 am in Brasilia, has, in principle, only two processes listed for potential debates, since 19 were removed from the agenda just yesterday, the 20th. The following topics remain: Proposal for the opening of a Public Consultation aimed at obtaining subsidies and additional information to improve the proposal for Auction Notice No. 1/2025-ANEEL, aimed at the acquisition of electrical energy and power, available through supply solutions, to serve the consumer markets of Isolated Systems, called “Auction for the Supply of Isolated Systems, 2025”; Notice of Subpoena of Penalty Notice — Tipe No. 28/2022, issued by the then Superintendency for the Superintendency of the Superintendency of the Superintendence of the Services of Generation (SFG), referring to the Jaguatirica II Thermoelectric Power Plant.

Grouped as a block, for approval, 75 other processes are listed, among which we highlight: Equatorial Roraima's 2025 Annual Tariff Adjustment, effective as of January 25, 2025; Proposal to open a Public Consultation aimed at obtaining subsidies for the approval of the version of the Marketing Rules and Procedure modules in compliance with Normative Resolution No. 1,085/2024; Administrative Appeal filed by Celesc, in the face of Order No. 1,228/2024, which upheld the complaint regarding the collection of the difference in consumption by irregular procedure; Request for Reconsideration filed by the Consumer Council of the EDP Espírito Santo Concession Area, in the face of Approval Resolution No. 3,370/2024, which approved the company's Annual Tariff Adjustment Index and made other measures; Request for Precautionary Measures filed by Brasil Fortescue Sustainable Industries, with a view to the immediate suspension of all reviews of access opinions in progress at the National Electric System Operator (ONS), as of August/2024, relating to ultra-electrointensive consumers with green hydrogen/ammonia production projects.

- Meet & Greener — Perspectives 2025, carried out by Greener, at the WTC Skybridge São Paulo, in São Paulo, SP;

Thursday — 23/01

- First session of the PMO (Monthly Energy Operation Schedule) working meeting, for the week from 25/01 to 31/01, at the ONS (National Electric System Operator);

Friday — 24/01

- Second session of the PMO working meeting at the ONS.

EXCLUSIVE INTERVIEWS ON CANALENERGIA LIVE

From late 2024 to early 2025, the energy sector barely shut down for the holidays. Money, after all, never sleeps, as Michael Douglas rightly recalls in the classic “Wall Street”. Eletrobras and the federal government, for example, are still negotiating the issue of a more effective Federal Government presence on the company's board of directors. And a few days before Christmas, the Ministry of Mines and Energy (MME) released the guidelines for the A-5 Energy Auction, scheduled for July 25. As always, it didn't appeal to the Greeks and the Trojans. Abrage people complained about the exclusion of large hydroelectric dams. Then came the announcement of the Isolated Systems Auction. Scheduled for May, it brought the news of the mandatory 22% of renewables in the proposals to be submitted by interested parties. Already on the brink of New Year's Eve, the MME presented the guidelines for the long-awaited Potential Capacity Reserve Auction, dubbed LRCAP. There was also a lot of wheezing. So much so that we reserved a space later here at Volts to better explain this story. Also in the case of the A-5, it should be remembered that the expectation of results is considered low among specialists. The distributors are overcontracted, they say, and there is a significant energy surplus.

The Brazilian electricity grid expanded 10.9 GW in 2024. The solar segment alone now has 52 GW installed, and last year it earned R$ 54.9 billion in investments concentrated on expansion. Specifically, in distributed generation (GD), growth is estimated to exceed 20% in 2025, according to the Brazilian Association of Distributed Generation (ABGD). Not to mention that the flow of so much production depends on the expansion of transmission systems. At least 1,260 km of lines will be needed by 2029, estimates the Energy Research Company (EPE). The result of all this exuberance in the national electricity sector is a free-market price perspective of a mere R$ 59/MWh by May, as recently reported by the Electric Energy Trading Chamber (CCEE). The organization, in fact, is about to implement a new governance, whose statute was approved in mid-December by associated agents.

POLITICS

You must remember well, because it was one of the most explosive themes at the end of 2024. The offshore wind power bill came out of the National Congress filled with “tortoises”. Among which, the subject included the creation of subsidies for coal and natural gas thermoelectric plants, among other incentives for other segments, such as small hydroelectric power plants (PCHs). In addition to compromising Brazilian climate goals, the entire package also threatened to bring an extra billion-dollar bill to Brazilian consumers. Well, accepting appeals from various entities - such as Abradee, IBP, Abraceel and Conacen, among many others that strongly protested against the final version of the bill - President Lula delighted the reluctant crowd. When sanctioning the legal framework for offshore wind turbines - Law 15,097, in force since January 10 - he decided to veto items unrelated to the original content of the project. There was almost general applause. Turns out this soap opera runs the risk of not ending there. There is a possibility that the Legislature, as soon as it returns from recess on February 1st, will end up promoting a “twist” in an extremely troubled plot. The National Congress has the power to overturn the vetoes. Because of this, in parallel, Abragel and Abrapch, which represent the interests of investors in SMEs, are already moving to support this possible reversal.

However, those who imagine that this topic was not the only one that caused great concern among the sector's agents on New Year's Eve are mistaken. Nor did the audience disregard a single minute of the plot involving the transfer of Amazonas Energia to Ambar Energia. In short, well summarized, the company owned by brothers Joesley and Wesley Batista is still in dispute with ANEEL. The regulatory agency is reluctant to transfer control of the distributor. At least as long as the conditions you consider necessary to carry out the business are not considered fulfilled. One of the most recent problems was a parallel issue. He even debated the gas contracts for the thermal power plants purchased by Ambar from Eletrobras. The president of the Federal Regional Court of the 1st Region, Judge João Batista Moreira, revoked the injunction that had annulled the conversion into Reserve Energy Contracts. Let's wait for the next chapters!

CONSUMPTION AND BEHAVIOR

Energy consumer will get cashback! The benefit was enshrined in the Tax Reform law, signed by President Lula, last Thursday, January 16. Refunds will be granted on monthly invoices. Low-income families registered with CADÚnico (Federal Government's Unified Register of Social Programs) will be entitled, subject to certain established requirements. Another good news, this time for all consumers, is that the green flag in the tariffs, in force since December, has a strong chance of continuing to take effect in February. Rainfall is generous over the main reservoirs of the National Interconnected System (SIN). The second weekly review of the Monthly Operation Program (PMO) for January showed a strong increase in the forecasts for influxes across the country. It was this little help from Saint Peter, by the way, that allowed last month's IPCA to not get even higher, when it hit 0.52% - 0.13 percentage points above the registered mark in November, of 0.39%. There was a contribution from the Housing group, where residential electricity declined 3.19%.

Energy Transition Acceleration Program (Paten)

There is great expectation surrounding the positive potential contained in the objectives of the Energy Transition Acceleration Program (Paten). Approved in mid-December by the Chamber of Deputies, the text is awaiting approval by President Lula. In short, the initiative involves creating a “green fund” to encourage the switch to clean sources. By the way, the public call for hydrogen hubs focusing on the decarbonization of the industry resulted in the submission of 70 proposals to the MME. No less important in the global effort to try to stop climate change, it is worth noting that Brazil reached a new record in 2024. There were 177,358 light electrified vehicles registered between January and December. There was an increase of 89% compared to the 93,927 registered in 2023. And those who don't deny energy, despite facing drastic water restrictions in the northern region of the country, are the Belo Monte power plant. To give you an idea, thanks to the level of efficiency of its production, it was possible to transfer R$ 12 billion in royalties over eight years of operation. Still on the northern side, the good news is that Roraima can once again be supplied with energy from Venezuela. The ONS has just completed a 96-hour test involving the Boa Vista-Santa Elena transmission line. The results of the facility's performance assessment are still being analyzed. The hope is for everything to be “okay”, because the state is in great need of this reinforcement.

ENEL CASE — SP

Procon São Paulo notified Enel SP once again. The reason was the supply collapse that affected 150,000 properties in São Paulo in the second week of January. Nobody deserves it. Especially because poor Brazilian consumers already pay one of the highest rates. In grants alone, the amount reached R$ 40.9 billion over the course of 2024. There was an increase of 1.49% compared to 2023, according to data from ANEEL. Even so, believe me, the Itaipu Binational rate, as pointed out by the consultancy TR Soluões, risks damaging a hole of R$ 2.5 billion! Not to mention that energy efficiency is definitely not our strong suit yet. The EPE reported that Brazil's investments in this area, imagine, have been gradually decreasing since 2016. The amount disbursed by energy companies in 2023 in this area was the lowest since 2013, reaching R$ 309 million. Say so to Shell, which, due to the oversupply, has just announced the shutdown of its solar and hydrogen generation projects in the country. Even less happy is Cemig. The Minas Gerais court ordered the cancellation of a tender that provided for the sale of 15 small hydroelectric power plants (PCH). The allegation is that public consultation is needed to carry out this divestment. Hardness!

CAPACITY RESERVE AUCTION — LRCAP

Now, get ready, because we're going to explore the context surrounding the LRCAP a little more. When the lights went out in 2024, after the announcement of the ordinance containing the guidelines of the event, scheduled for June, some people spent New Year's Eve with a hot head. It's just that after so much waiting, the original text did not meet all market expectations. The controversial impact was such that the MME ended up issuing a new ordinance on January 6, altering the content of the previous act. The new text brought two modifications, one of which segregates the thermal product into A and B. Segment A opens space for existing natural gas and biofuel thermals, which was not previously foreseen. Segment B continues as established on the last day of 2024. In practice, as pointed out by the sub-editor of CanalEnergia, Maurício Godoi, this decision makes it possible for Eneva to enter the event. To untangle the issue a little more, it turns out that two of the Parnaíba complex's power plants, Parnaíba I and III, have contracts in effect until 2027. As the auction would allow only new power plants, starting in 2028 these assets would be without contracts and would not be able to compete for the LRCAP.”

Source: EXCERPTS TAKEN FROM THE 143RD EDITION, OF VOLTS BY CANALENERGIA — 21/01/2025

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SUBSTATIONS: LEARN ABOUT THEIR FUNCTION AND THE DIFFERENT WAYS TO CLASSIFY THEM

21/1/2025

“In this article, João Mamede Filho, electrical engineer and professor at The Electrical Sector Institute, discusses the function of substations for the electrical system and their various forms of classification.

Function of substations and susceptibility to faults

The fundamental role of a substation is to reduce or raise the voltage level associated with the power that reaches the primary terminals (lowering substation) or the secondary terminals (lifting substation) of the transformers, which is its most important element. But it is also through the substation that the feeders or transmission lines that will feed other substances are derived - susceptible to different aggressions demanded by the environment that may arrive through the transmission and distribution lines and the atmospheric discharges that directly hit them.

As the substations have a large amount and diversity of equipment, we can consider power transformers to be the most susceptible to faults that result in the suppression of transmitted power, harming consumers, who are the main objective of the electrical system. Damage to a switch, a circuit breaker, a lightning rod, etc. can be circumvented quite easily, without further harm to the user. Conversely, when damaged, the transformer can cause immeasurable inconvenience to the population - in the case of substations owned by electric utilities - and financial loss for industrial projects, if another transformer is not considered in the substation project to absorb the load serviced by the faulty transformer. In cases where the fault is large, the transformer must be removed and taken to the manufacturer or specialized company for repairs.

Substation equipment and classifications

The main equipment that makes up a substation are: (i) power transformers; (ii) measurement transformers (TC's and TP's); (iii) lightning arresters; (iv) circuit breakers; (vi) rectifiers; (vii) battery banks; (viii) auxiliary service transformers. Some of this equipment can be seen in the image below, of a 230 kV substation.]

Equipment present in a 230 kV substation.

To obtain a project of a high technical level, the designer must make use of all the standards that must be applied to a power substation, since for each equipment there may be one or more regulatory documents that need to be used. Because it is impractical to list these standards in this space, such information can be obtained in the book High Voltage Substations, where the regulations applicable to substation projects are enumerated.

Substations can be classified in different ways, according to the objective that you want to address.

1 — Regarding the tension level

a) Distribution substances

They are those supplied by the distribution networks of the electric utilities to which all small-sized residential, commercial and industrial consumers are connected, feeding small loads at the voltages between phases of 220 V and between phase and neutral of 127 V. These voltages are used mainly by consumers in Southeastern Brazil. In other regions, voltages of 380 V between phases and 220 V between phase and neutral predominate. They are called Distribution Substation and are powered by the local utility's distribution network.

b) Medium voltage substances

They are those designed to operate at voltage levels called “medium voltage”, which can vary in practical uses between 1.2 and 34.5 kV. The most representative are those that operate at voltages of 13.80 kV and 34.5 kV. The former are massively built to serve medium-sized businesses and the vast majority of Brazilian industries, all located in concession areas that operate in the 15 kV voltage class. Substations with a voltage of 34.5 kV, on the other hand, are widely used in medium and large photovoltaic plants.

2 — Regarding the construction type

There are a wide variety of construction types of substations, such as:

a) Sheltered substances

They are those installed in shelters that protect them against weather, water, sun and storms. These shelters can be built in different shapes and materials used, the most notable of which are the following:

• Masonry houses;

• Metal cubicles with natural ventilation;

• Armored metal cubicles with forced ventilation.

Such substations are widely used in medium voltage systems.

b) Weather substances

They are those built without shelter capable of protecting them from the elements. The vast majority of substations with a voltage equal to or greater than 69 kV are under construction at the time. They are rarely built in shelters, unless the environmental conditions are very severe, prohibiting their installation on time.

3 — Regarding the insulating medium

Different insulating media can be used, such as:

a) Air insulation

The vast majority of the substations are air-insulated, comprising medium and high voltage substations. They are the lowest-cost substances.

b) SF6 insulation

Also called Gas Isulation Switchgear, these are substations in which all equipment (measuring transformers, circuit breakers, switches, etc.) are installed inside large diameter metal tubes, filled with SF6 gas with high insulating power and subject to a certain level of positive pressure. Due to their high price, they are only installed in urban areas where the land value is very high or there is simply no land available. Due to its great reliability, certain medium and large consumers use this type of substation, such as data centers and the like. They are also used in offshore wind energy projects, which do not yet exist in Brazil, but with high expectations of being available in the next 5 years.

c) Hybrid insulation

These are substations where some parts are built with air insulation and others using SF6 gas. The SF6 modules comprise the input and output bays of the substations, since these bays are made up of equipment that is normally installed very close together - such as current transformers, potential transformers, circuit breakers and circuit breakers, making it easy to enclose them in SF6 cylinders.

4 — Regarding the form of operation

The substation design must take into account the form of operation that will be used.

a) Substation with in-person operation

Before the availability of digital technology added to the supervision of the substations, the only way of operating these substations was in person, with the presence of groups of operators (one or more in each shift) and access to a radio transmitter for communication with the company's Operation Center.

b) Supervised substances

With the development of digital technology dedicated to power substations, the operation became remote, that is, from the company's Operation Center, located anywhere in the country, where a group of specialized technicians can operate one or more substations remotely, day and night. Of course, there are maintenance teams in nearby locations that provide support to remote operator teams, if physical intervention is necessary, such as the replacement of an accessory or even a broken piece of equipment. But remotely, operators may be able to maneuver a circuit breaker to re-establish substation operation when there is a shortage of supply

The preparation of the substation project requires the participation of engineers from different technical backgrounds, as well as mid-level technicians and caddy technicians, because in addition to jobs that require knowledge in electricity, there is a need for the participation of a civil engineering professional, responsible for the structural calculation of the bases of the transformers, the command and control house and all other demands in this area of knowledge - in addition to engineering professionals specialized in the preparation of automation, supervision and control projects.

Normally, the design of a medium and large substation begins with a meeting between the designer and the person responsible for the project in which the substation will be installed. At that time, the value of the load to be installed, in the case of charging substations, or of the power to be generated, in the case of substations for generation plant projects, whether using clean energy, such as wind, solar, biomass, etc. or using natural gas and fuel oil, should be discussed.

5 — Regarding the stages for preparing the project

The design of a substation must be divided into three different stages:

a) Conceptual project

The name itself already defines the activities to be carried out. Normally, in this phase, the designer conceives the project presenting the layout, cuts and views of different parts of the substation, without details, so that changes can be discussed with the entrepreneur's professionals that may favor the load or generation needs. After this stage, the designer prepares a technical report, a list of the main equipment to be used and a set of approximately 10 plants that explain the general knowledge and functionality of the substation. This project is also useful as part of the documentation that must be sent to environmental agencies to obtain environmental licenses.

b) Basic design

Once the conceptual project has been consolidated, the designer begins the basic design phase. In this phase, the details of the substation must be deepened, so that the project can be used by the entrepreneur to launch the price taking or bidding process on the market. The most relevant part at this stage of the project is the detailed Technical Specifications Book for all high-cost equipment and materials. However, many parts of the project must still be shown without adequate detail, as the data to complete this activity is not known. As an example, we can mention the command and control house. Its dimensions and layout can only be finalized when the designer receives the dimensions of the panels, cubicles, rectifiers, battery banks, etc. from each supplier. The same occurs with the base of the transformers, since it is necessary to have the dimensions of this equipment and gross weight.

Therefore, the designer makes use of her control house models, transformer base, etc. that are closest to the project under consideration in order to pass on the most realistic possible project to the proposers.

A similar case occurs with the electrical project. Since the identification of the panel terminals, cubicles, circuit breaker control panel, etc. is not known, it is not possible to draw up the functional diagrams and, consequently, the interconnection diagrams between equipment, cubicles and panels.

c) Executive project

Once the winner of the event is known, the executive project can be partially initiated. The main activities of the executive project in their entirety can only be initiated when all information from the suppliers of the equipment and accessories is available. However, some other activities may be implemented before the technical information is known, such as the design of the ground mesh. In general, the designer only completes the executive project at the end of the work when the “as built” is supplied by the assembly and construction company of the substation.”

Source: THE ELECTRICAL SECTOR INSTITUTE

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OTHER NEWS TODAY

21/1/2025

Vibra completes the purchase of Comerc: https://bit.ly/42lMldm

Operation consolidates one of the largest multi-energy platforms in Brazil and Clarissa Sadock will be the new CEO.

Tradener will build wind power in Rio Grande do Sul: https://bit.ly/3Wtf6kK

The plant will have a capacity of 80 MW. The marketer is expected to migrate more than 300 customers in 2025.

Ludfor groups together retail and retail verticals: https://bit.ly/4hovevL

The combination of Viva Energia and Simplifica will provide more efficient service.

GreenYellow issues R$ 85 million in debentures for distributed generation: https://bit.ly/4hnUMJt

The process began in June 2024, with Itaú BBI as lead coordinator and liquidation took place in December.”

Source: Canal Energia

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