As one of the main agents in the Brazilian Electricity Sector, our initiatives are planned to be in compliance with our strategic guidelines and the regulatory context of the sector. Furthermore, we take into account the risks and opportunities that arise in this environment, which ensure a comprehensive approach aligned with our objectives and values.
Our Business Model is structured as per the International Framework for Integrated Reporting, which establishes six essential capitals: Manufactured; Natural; Human; Intellectual; Social and Relationship; and Finance. Using this capital in an integrated manner, we conduct our renewable energy generation and marketing activities.
This collaborative approach allows us to achieve excellent results for the company and its shareholders, as well as sharing value with all stakeholders. We generate renewable energy for millions of Brazilians, promote socioeconomic development actions for the population and invest in projects and initiatives aimed at preserving and recovering the environment.
Our Purpose
Generate clean and renewable energy, in a reliable and sustainable manner, using technological innovation and creativity, adding value for shareholders, society in general, the local community and the environment.
Commitment to Sustainable Development
Build a positive legacy, contributing to the social and economic development of the territories where it operates.
Industry Scenario and Generational Challenges
Aneel data from December 2023 reveal that Brazil has achieved an electrical matrix of 199,324.5 MW of inspected power, of which 83.67% are from sources considered renewable. Hydroelectric power stands out, accounting for 54.6% of the total installed capacity in operation. (according to Sagic/ONS).
Despite the El Niño climate phenomenon, the hydrological regime throughout 2023 kept high levels of energy stored in the country’s main reservoirs. According to the ONS, SIN reservoirs ended the year with 59.5% storage, an increase of approximately 1.5% compared to 2022.
The Belo Monte Hydroelectric
Power Plant played a fundamental role in guaranteeing the energy supply and in recovering the reservoirs of plants in other regions of the country that are part of the SIN to meet national demand. With an installed capacity of 11.2 GW, corresponding to approximately 10% of the total capacity of hydroelectric plants, and a production of 31,521 GWh, the plant met approximately 6% of Brazilian consumption.
The Marketing Of Renewable Energy
Energy trading in Brazil occurs in two market spheres: the Regulated Contracting Environment (ACR) and the Free Contracting Environment (ACL). All contracts, both ACR and ACL, must be registered with the Chamber of Electric Energy Commercialization (CCEE) and serve as a basis for accounting and settling differences in the short-term market.
Throughout 2023, we actively positioned ourselves in the free energy market, which resulted in the sale of 28,029 GWh in the ACR, 4,004 GWh to self-producers and company partners and 7,967 GWh in the free market. Due to the need to manage hydrological risk, we also purchased energy on the free market in the amount of 1,891 GWh.
Norte Energia was the second largest in terms of energy sales volume at CCEE in 2023. To mitigate the effects of the GSF, the company has adhered to the renegotiation of hydrological risk since 2018, with 70% of its Physical Guarantee renegotiated, resulting in a total risk premium of BRL 457 million.
In terms of sales, in 2023, we highlight the 4% increase in the volume of energy sold, When compared to 2022, which totaled 4,519 average MW. This increase is a result of the GSF’s active management strategy, which aims to better exploit the project’s entire Physical Guarantee (4,571 average MW).
