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20 Years of ENGIE Brasil

Holding

Today, ENGIE tops the energy generation ranking in the private sector, at almost 10,000 MW in own installed capacity, is one of the biggest distributed photovoltaic generation companies, has a strong presence in free-market energy trading, and provides a wide range of innovative solutions for people cities and companies, including energy efficiency, energy monitoring and management, electricity supply contracts management, public lighting, HVAC systems and urban mobility.

ENGIE is a prime example of the successful privatizations held in the late 20th century. Based on the positive results that it has posted over the past two decades, the Group’s purpose is now to expand its offering of energy services and solutions in Brazil, becoming a leader in this area as well. Along these lines, the Group acquired two service companies this year: GV Energy and ACS. The acquisition of GV Energy, the biggest specialized energy-management consultancy firm in Brazil, was completed in August. With this deal, ENGIE became active in risk management and energy supply contracts, energy transmission- and distribution-related costs, and digital management platforms. As the leader in its segment, with close to 15% market share, over its 11-year history GV Energy obtained savings of R$ 9.1 billion with energy supply management and contracting for its clients in the free and captive markets. Energy efficiency company ACS, in its turn, was acquired by the Group in January. A market leader with 40% market share in its area of operations, ACS – currently ENGIE – has a portfolio of over 600 clients, providing services such as remote energy, water and gas consumption and temperature monitoring.

“These are important acquisitions that expand and supplement ENGIE’s range of operations in Brazil and strengthen our presence in the solutions area, one of the Group’s priorities in the country,” emphasizes ENGIE Brasil’s CEO, Maurício Bähr.
Because of its huge potential for renewable energy generation, Brazil is seen by ENGIE’s headquarters in France l as a key country in its growth strategy, as the Group is working hard to become a leader in the world’s energy transition.
“Brazil is one of the most important markets for ENGIE, and we have been encouraged to continue growing in generation through renewable sources and to seek out new opportunities,” Bähr says. The executive has no doubts that ENGIE is a clear success in the areas of sustainability and balancing the interests of all stakeholders. “We turned a government-owned company into one of the most admired companies in Brazil,” he says. “Celebrating the past motivates us to face the future’s challenges with increased gumption and dedication.”

TRANSMISSION LINE

This year ENGIE launched the Gralha Azul project, with investments of approximately R$ 2 billion in 1,000 kilometers of transmission lines in Paraná state. Named for the State’s iconic bird, the project’s purpose is to increase energy supply to the center-south of Paraná with the construction of five substations and ten transmission lines that will run through 25 municipalities. The project’s concession period is 30 years from entry into the contract, which was signed on March 8. Construction works should generate 4,000 jobs by the end of the project, which is slated for 2022. “Our entry into the transmission lines business enables diversifying the portfolio, growing based on new long-term concessions, and capturing opportunities in line with our financial discipline,” Bähr notes.

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

Social responsibility and respect for the environment are key elements of ENGIE’s identity and values. Its actions include the establishment of Culture and Sustainability Centers, which are intended to foster the recovery, preservation and appreciation of local customs and traditions and thereby generate jobs and income, reduce crime, and enable social change. The centers now serve over 540,000 people per year, in addition to 1,500 children enrolled in dance, drama and music workshops. Another noteworthy program in the social area is the Healthy Children, Healthy Future program, which is intended to improve the poor health indices and living standards of children in the areas surrounding the Estreito and Jirau hydro plants and the Trairi wind farm. Close to 25,000 children have benefitted from improve health indicators. Another highlight is the wellsprings preservation program, which includes the protection of water springs in farmland and training and skills-building for rural communities. The program has already involved 1,500 families involved in the protection of 1,800 water sources up and down Brazil.

BIRTHDAY GIFT

The birthday gifts are many and range from celebrations involving employees in all of the regions in Brazil where ENGIE operates to musical performances, the planting of trees and a lab for open innovation projects. The Florianópolis ENGIE Lab joins the ones already in operation in France, Belgium, Singapore, China, Mexico, Chile and the United Arab Emirates. It is an important achievement for the company in Brazil, as it will focus on the potential of renewable energy sources – solar and wind –, smart cities, biogas, and hydrogen, and conduct projects nationwide. One example is its research into natural hydrogen in the São Francisco River Basin, together with France’s ENGIE Lab Crigen, the Rio de Janeiro State University (UERJ) and consultancy firm GEO4U.

“Brazil shows great opportunities for growth and for the development of innovative solutions in these fields,” says CEO Mauricio Bähr. The ENGIE Lab will coordinate with the Group’s other labs on three work fronts: Research and Development partnerships with institutions accredited by the Brazilian Power Regulatory Agency (Aneel), projects developed by ENGIE itself, and open innovation, through startup incubation and acceleration and hackathons. The ENGIE Lab has a partnership with the Santa Catarina Federal University (UFSC) that, among other activities, will offer master’s and doctor’s degrees, and receive in exchange French professors to deliver extension courses.

THE FUTURE

To go beyond energy, to keep up with the market, to anticipate what is coming, and to offer innovative solutions to clients. These are some of the objectives that ENGIE has charted for the coming years. In the energy segment, Bähr sees the company operating in 2030 in a more open market, with thousands of clients, innovative products and new business lines. “I see ENGIE present in the lives of people and of small and medium-sized companies through energy, distributed generation, energy buying and selling platform, and far more,” he states. The executive also underscores that the company is on the right track to embrace the 3D strategy: Decarbonization, Digitalization and Decentralization. “Our energy and services solutions foster harmonic growth by offering our clients an opportunity to decarbonize their production processes. We are therefore joined by the planet’s sustainability.”

ENGIE BRASIL

Energy generation:
  • 10,000 MW (including ENGIE’s 1,500 from the Jirau Hydro Plant)
  • 34 power plants
  • 90% of the energy generated from renewable sources
  • 6% of all the energy generated in Brazil
  • Ten plants operating remotely from the headquarters in Florianópolis (12 by yearend).
Other business lines:
  • Distributed solar generation
  • Energy efficiency
  • Energy monitoring and management
  • Energy consultancy
  • Multi-technical maintenance & Facilities management
  • Digital urban traffic monitoring
  • Public lighting
  • Security systems and electronic surveillance

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