The energy sector is undergoing transformation and, in the coming years, it should become radically different from the model defined more than one century ago. The new model will be shaped by new sources and new energy generation and storage technologies, in addition to more empowered and connected consumers who will also generate and offer energy. We believe we will continue to be relevant and competitive if we innovate in the way we serve our main customers and contribute to building a new industry model, with minimal environmental impact and greater benefits to society.
Aware of this context and in line with AES global guidelines, we revised our Sustainable Strategic Planning, containing long-term objectives and goals to be achieved by 2021. The new vision of AES in Brazil is to be recognized by our customers and shareholders as the preferred partner for safe, innovative, reliable and affordable energy solutions.
For the companies in the group, the year 2016 was highlighted by major investments and restructuring in our companies in order to increase customer satisfaction and create value for all our stakeholders.
At AES Eletropaulo, we are focused on quality supply of safe energy to one of the country’s most economically important regions. In 2016, our investments totaled BRL 791.5 million – most of this total was geared toward the company’s Quality Recovery Plan. In customer relations, we are challenged to keep improving and offer timely service in a more agile and digital way. We are also dedicated to restructuring the company’s governance in order to enable better results for our operation.
Through AES Tietê, we are dedicated to developing new products by applying innovative technologies and prioritizing clean and renewable sources of energy – such as wind and solar. The year 2016 was highlighted by the expansion of our portfolio and the first
distributed generation projects, battery-based energy storage, and other sustainable solutions that place our customers at the center of the planning of our activities. For the next few years, we will grow by expanding our installed capacity and marketing customized solutions.
In addition to responding to our customers’ energy demands, we created AES Ergos, a company with a comprehensive portfolio of products and services for corporate and government customers, mainly in energy efficiency.
At AES Uruguaiana, we worked to make it a bi-national generating plant. We entered into an agreement to resume supply of gas, which enables the return of the trading operation and the exporting of energy to Argentina.
Innovation is one of the levers that will drive us to reach our strategic goals, and for this reason, last year we launched the AES Innovation platform. Through this platform, we can participate in the creation of a new business model for the electricity sector, developing solutions together with universities, research centers, and partner companies.
I would also like to highlight the AES Institute, created to strengthen sustainable development initiatives in the communities where we operate, based on social innovation and income generation. Operating as a network, we drive the positive transformation of society.
I would like to thank all the employees at AES Brasil companies who were involved in the various projects we conducted in 2016. We have major challenges on all fronts, from generation to distribution, but we are prepared to be leaders and main players in the transformation of the electricity sector, by expanding and becoming increasingly more efficient in our business.
We are part of the lives of millions of Brazilians, providing sustainable, safe and affordable energy solutions for all. We specialize in different types of business: generation, distribution, marketing and integrated solutions. We have four companies, in which more than 8.3 thousand employees work, and the AES Institute, which directs our private social investments.
To ensure the dissemination of values and ethics in relationships with all stakeholders, we have in place AES Brasil’s Ethics and Compliance Program, composed of three pillars: Education and training; Contractual compliance; and AES Helpline.
The safety of our employees, services providers, and the community is our priority when we develop our activities. In our
Sustainable Strategic Planning, we set performance goals regarding this topic that are monitored periodically by the Board of Officers. In recent years, we have made corporate and organizational restructurings with the goal of leveraging growth with energy solutions, innovation and new technology.
Globally, we are part of the AES Corporation, a group of businesses operating in 17 countries in the Americas, Europe, and Asia, listed at the New York Stock Exchange and with a wide portfolio in energy distribution and generation from thermal or renewable sources, and energy storage.
In order to advance towards AES Brasil’s vision and be recognized by our customers and shareholders as the preferred partner for safe, innovative, reliable and affordable energy solutions, we operate in accordance with the Sustainable Strategic Planning, which describes long-term objectives and how they will be achieved.
These objectives were approved by our leadership in 2016, when we developed the planning cycle from 2017 to 2021, considering the changes and trends in the energy sector, as well as the risks and opportunities of creating value in the segments in which we operate. New objectives and targets were established for AES Brasil group companies.
To be recognized by our customers and shareholders as the preferred partner for safe, innovative, reliable and affordable energy solutions.
To promote the well being and development by providing secure, sustainable and reliable energy solutions.
• Promote innovation
• Assure operational efficiency
• Amplify optionality
• Reduce risks
The AES Innovation platform, structured in 2016, permeates the companies in the Group, driving strategy, investments, and processes within five drivers.
Under this platform, the Aceleração de Projetos (Project Acceleration) initiative seeks to develop products, services or new business models in partnership with startups and other companies under the topics Internet of Things, Energy Storage, Energy Efficiency, Distributed Generation, and Electric Vehicles. The initiative received 233 registrations and selected eight finalists by the end of 2016.
In 2017, after holding meetings and workshops with the selected finalists, the two projects will be defined and will go through the process of acceleration and the implementation of the solutions presented.
One of the main advantages of this initiative is that it is financed by R&D (Research and Development) resources, according to regulations, promoting innovation for the sector as a whole, based on the regulatory process defined by ANEEL. AES Brasil will participate as project co-developer, and not in the companies’ equity.
Internet of Things
AES Tietê is an innovative and integrated energy platform adjustable to the demands of its customers. The company offers off-the-shelf products and custom solutions that ensure autonomy in energy and allow customers to decide on the most sustainable means of energy supply in all senses: efficiency, availability, reliability, and innovation. In 2016, AES Tietê invested a total of BRL 6.7 million in Research & Development.
In distributed generation, the company offers its customers an integrated platform of solutions and services with the development of projects in distributed generation. In the battery-based energy storage sector in Brazil, AES Tietê is a pioneer in offering this solution to customers.
In 2016, the company reforested 409 hectares surrounding our reservoirs, as a result of its own initiatives and investments, and the partnerships with the SOS Mata Atlântica Foundation, universities, companies and municipalities. In that same year, a study by researchers from the Maringá State University and the Londrina State University demonstrated the effectiveness of the Fishing Management Program.
AES Tietê has disclosed its inventory since 2012 in the Public Record of Emissions, adopting the specifications of the Brazilian GHG Protocol Program. In 2016, emissions of CO2e totaling 144 tons were prevented. The goal, which had previously been defined with a deadline for 2019, was revised and currently is to prevent emissions of CO2e by reducing 170 MWh of electricity referring to internal consumption in 2017”, compared with the performance in 2016.
AES Eletropaulo is the company that distributes the largest amount of energy in the country , driving the routine of the city of São Paulo and 23 other municipalities. The company is part of the lives of approximately 20 million people. There are over 1,500 consumer units per square kilometer – the highest density among all Brazilian distributors.
The main AES Eletropaulo project under development is the Smart Grid project, considered the largest smart grid initiative in Brazil. Launched in 2013, this project should be fully available and functional for approximately 62,000 customers in Barueri by 2019.
Every day of the year, AES Eletropaulo works to guarantee its customers’ satisfaction with the services provided. Therefore, investments are made in innovation, network improvement, improving processes, and agility of the service channels.
In 2016, the company expanded the Quality Recovery Plan, whose main objectives are:
• To reduce the number of disconnections from the distribution network.
• To reduce the number of customers affected by power outages.
• To reduce the duration of power outages.
• To reduce the number of accidents
• To reduce the number of customer complaints regarding services
In order to ensure customer satisfaction, AES Eletropaulo has JAAT – Jeito AES de Atender (The AES Way to Serve) and, in 2016, it identified five Customer Journeys, the most common situations that generate contact with AES Eletropaulo, in order to track all interaction and assess customer satisfaction with assistance and services. The Customer Journeys are:
• Communication due to power outage
• Billing inquiries
• Request for services
• Request for compensation for damages to electrical equipment (PID)
• Questions about standards and technical regulations
AES Eletropaulo promotes actions to increase the efficiency and quality of operations, ensure customer safety and optimize the use of its energy distribution assets. In 2016, 385 thousand inspections were carried out, 91 thousand irregular connections were identified, 80 thousand disconnections were recovered and another 46 thousand connections were regularized.
AES Eletropaulo has disclosed its inventory since 2012 in the Public Record of Emissions, adopting the specifications of the Brazilian GHG Protocol Program. In 2016, it was not possible to avoid emission of greenhouse gases. The goal, previously defined with deadline for 2019, was revised and currently is to “avoid emissions of CO2e by reducing 151 GWh of global losses in 2017”, compared with the performance in 2016.
AES Ergos, the new brand of the company AES Serviços, operates as an integrator of energy solutions to serve utilities, corporate clients and municipal governments. Its portfolio responds to the demands created by the increasing complexity of the Brazilian energy mix, which has led several organizations to evaluate the need to hire companies to provide specialized services, migration to the free market and invest in energy efficiency projects or selfgeneration projects.
The main solutions offered by the company are:
• Utilities – solutions for the construction, maintenance and operation of generating plants, transmission and distribution lines, substations and primary cabins, service shops, network services (including construction and maintenance), technical and commercial services, tree pruning, network engineering projects, among others, without limitation of voltage level;
• Transactions – commercial partnerships that make it possible to collect and manage billing amounts through the electric energy invoices delivered in the service territories of affiliated distributors;
• Municipal governments – construction, operation and maintenance of public lighting.
Learn more at www.aesergos.com.br
Inaugurated in 2000, AES Uruguaiana is a natural gas power generator located in Rio Grande do Sul state and authorized to operate as an independent producer for a period of 30 years*. Its installed capacity is 639.9 MW.
The plant’s operations have been paralyzed since 2009, due to the interruption of gas supply by its supplier. The thermoelectric plant started operating in an emergency character in 2013, 2014 and 2015, for temporary periods. In 2016, the plant remained in hibernation due to the unavailability of gas.
The maintenance and the preservation of equipment are carried out continuously by the company, even in its hibernation state.
AES Uruguaiana adopts the guidelines of the Integrated Management System, contemplating ISO 14001 (Environment) and OHSAS 18001 (Occupational Health and Safety) standards, in line with the Sustainability Policy that guides all AES Brasil companies. Even during non-operating periods, the company maintains the environmental monitoring program, ensuring compliance with current environmental legislation as per the plant’s operating license.
*Counted from June 26, 1997.
In AES Brasil’s business growth and development strategy, managing stakeholder relations is fundamental to understanding their needs and developing strategies to enhance shared value through our activities and operations. In order to structure this process and define the best mechanisms of engagement, our stakeholders were grouped in a matrix.
In 2016, AES Eletropaulo and AES Tietê entered the ranking of the 150 Best Companies to Work For, developed by Você S/A magazine.
In the relationship with suppliers, the Sustainable Partnerships program guides the selection and development actions of our partners. Partner contracts that are highly critical and complex are managed through the Supplier Performance Index (IDF).
Created in 2016, the AES Institute expands our capacity to drive sustainable development through social innovation. With our own financial resources and incentive laws, we have the potential to bring about positive change in the lives of people and communities by supporting innovative energy solutions, income generation
and empowerment that provide gains for all involved.
The Institute is responsible for managing AES Brasil’s volunteer social action in three pillars:
Innovation for social development
It brings benefits to strengthening the capacity to form partnerships and network with beneficiaries of social projects, entrepreneurs, volunteers, civil society players, and partners in the public sector.
Collaboratively, we will be able to make better use of the available
resources in project management, economic assessment, knowledge management, and structuring an environment where individuals and organizations supported are offered the opportunity to be in charge of their own development.