"Environmental liability and licensing of hydroelectric and thermal power plants " (Special Topics in Energy Planning - PE 180 class

) Prof. Oswaldo Sevá Licensing and construction of three hydroelectric plants on the Rio das Antas (Basin-Guaíba Jacuí, State of Rio Grande do Sul) Ricardo de Sampaio Dagnino MSc in Geography, IGE-UNICAMP July 5, 2006 Summary - Location - History - Entrepreneur - General features of HPPs - The HPPs 3 - Af fected - Megawatts by area - Interconnection to the national grid - Drowning by Numbers - Trivia of Technical Reports Location 29 ° S 52 ° W 30 ° S Veranópolis 20 000 hab Caxias do Sul 360 000 inhab Bento Goncalves 90 000 hab Porto Alegre Source: SIPOT, Jul/2005 Source: ONS, Mar/2006 Monte Claro Castro Alves July 14 Históricofuturo CERAN. 11/2000 - ANEEL's unsuccessful bid by the Consortium 01/2001 - CERAN the constitution. 03/2001 - Concession Contract "Use of Public G ood" (35) 10/2001 - UHE's third LP from 02/2002 - LI UHE Monte Claro 04/2002 - C onstruction of the Monte Claro hydroelectric 07/2002 - LI UHE Castro Alves 11/20 03 - Misuse of Rio to UHE Monte Claro 01/2004 - Signed Order of Service to the b eginning of the works of Castro Alves Hydroelectric 02/2004 - UHE LI July 14 08/ 2004 - UHE LO Monte Claro and filling of the reservoir 12/2004 - start of commer cial generation of the first of two hydroelectric turbines Monte Claro, with the supply of 65 MW to the National Integrated Power System. (Source: News from CERAN, 10/07/2005) Does not match the information that the HPP is not yet connec ted to System! 02/2005 - Compensatory measure: Government of RS will receive £ 2.7 million CERA

N 12/2005 - LPs for relocation of two different cemeteries to UHE July 14 Transmission lines and substation 11/2003 - LI Substation (Veranópolis) 07/2004 - LI 23 kV feeder Monte Claro-Cast ro Alves (Pref. N. Rome South) 08/2004 - LO of Transmission Line and Substation Monte Claro 09 / 2004 - LI's 25 kV line between the water intake and powerhouse UHE Castro Alves CERAN Companhia Energetica Rio das Antas (CERAN) is an independent power producer, a p rivately held corporation. Holding's investment ENGEVIX Other winners: Vedacit and Brazilian Association of Portland Cement Builders Suppliers Engevix - Design / Engineering Camargo Corrêa - Alstom Works - Equipment Data engenheirísticos UHE Monte Claro Dam: comp. 250m, h 26m Excavation (open): 971 000 m3 of rock excavation: 335 000 m3 Concrete (conventional and the roller compacted): 136 000 m3 Steel: 5000 ton UHE Monte Claro (130mW) Water level max. normal: 148 m normal downstream water level: 104 m Sill Strand: 26 m Gross Fall: 41.15 m Assured Energy: 59 MW Reservoir Area: 1.4 km2 drainage area: 12,132 km2 1 km Photo site ABCP 2 turbines Alstom 65Mw 106 000 m3 of conventional concrete, 30 000 m3 of roller compacted concrete and 5500 tons of steel. (Font Gov. Site of RS. News, 25/08/2004) 08/2004 - Operating License and filling the tank 12 / 2004 - start of commercial generation of the first of two turbines Photo report on the half-biotic CERAN Photo site CERAN Data Generation ONS Jul (4) 2005-58 (PDP) and 57 (check) Jun (1) 2006-6 (PDP) an d September (check) Jun (2) 2006-13 (PDP) and 23 (check) Jun (3) 2006-27 (PDP) a nd 43 (check) Jun (4) 2006-65 (PDP) and 65.22 (check) Aerial view of the bed of Downstream (Report 01/2006) Aerial view of the bed of Amount (Report 01/2006) UHE Castro Alves (130mW) 32.21% completed (Sec. Planning / RS, Dec/2005) Water level max. normal: 240 m normal downstream water level: 148 m Sill Strand: 45 m Gross Drop: 92 m Assured Energy: 64 MW Reservoir area: 5 km2 drainage area : 7635 km2

Dam: comp. 350m, h. 45m Excavation (open): 191 000 m3 of rock excavation: 725 00 0 m3 Concrete (conventional and the roller compacted): 235 000 m3 Steel: 3000 to n 7 km Aerial view of the bed of Amount (Report 01/2006) Aerial view of the bed of Downstream (Report 01/2006) July 14 HPP (100MW) 18.60% completed (Sec. Planning / RS, Dec/2005) UHE July 14 200 m Water level max. normal: 104 m normal downstream water level: 70.5 m Sill Strand : 29 m Gross Fall: 33.40 m Assured Energy: 50 MW Reservoir area: 5 km2 drainage area: 12,775 km2 Dam: comp. 281m, h. 29m Excavation (open): 301 000 m3 of rock excavation: 153 00 0 m3 Concrete (conventional and the roller compacted): 174 000 m3 Steel: 4000 to n Aerial view of the bed of Amount (Report 01/2006) Aerial view of the bed of Downstream (Report 01/2006) Indemnities (Until 2004) HEP MONTE CLARO The relocation and compensation COMPLETED. UHE CASTRO ALVES have been held 88.55% of compensation. JULY 14 HPP have been held 3.24% of compensat ion. Megawatts per area flooded For being the-river plants and adduction long tunnels and inclined plants boast that the flood will be small. In the case of UHE Castro Alves "Of the 92 meters of falling gross exploitation, 52 meters are obtained by the natural slope of th e river, and the remainder by bus. The reservoir will inundate an area of 5 km2, one of the best links installed power / wetland of Brazil: 26 MW/km2. "Site of the CPFL. News of January 2004 But if we work with the default (only one of the turbines) that has been practiced by UHE Monte Carlo noticed a drastic change in values. So the calculation becomes activated turbine area flooded and not insta lled power per area. Monte Carlo: (a turbine) - 46 Mw/km2, (2) - 93 Mw/km2 Castr o Alves (1) - 8 Mw/km2 (2) - 17 Mw/Km2, (3) - 26 14 Mw/km2 July (1) - 10 Mw/km2, (2) - 20 MW/km2 Barra Grande (Rio Pelotas) - 690 MW = 9 to 77 km2 Mw/km2 Interconnection to the national network (?) The interconnection of the plants to the National Interconnected Electric System will be made through a 230 Kv substation interconnected that severing two trans mission lines Eletrosul. Even generating electricity for the SIN, the UHE Monte Claro CaxiasFarroupilha system benefits the environment and the enterprise, espe cially in case of contingencies System. (Source: site CERAN - 10/01/2005) Source: ONS, Oct/2004 FRB = Out of the basic network

Drowning by Numbers Will be invested R $ 163 thousand in UHE Monte Carlo, which serve 790,000 reside nts. Source: Energy Bulletin, No. 21, April 2002, ANEEL The construction of three plants, which should come into operation until the end of 2009, aims to generate over 15,000 direct jobs. (Source: Site Vedacit, manuf acturer of sealants used in construction of power plants) "The total investment for the three plants will be $ 675 million, with the creat ion of 4950 direct jobs and 150 permanent positions," the Secretary of Energy, M ines and Communications, Valdir Andres. (Source: Website of Gov. RS. News, 25/08 /2004) of the $ 675 million invested, each plant receives one third (source: rep orts CERAN) Investment in UHE Monte Claro is $ 249 million, $ 160 million of the state - BND ES (with support from the Bank of Brazil, BRDE - Bank Regional Development of the South End, Box RS Banrisul). R $ 89 million of shareholders CERAN. (Source website CERAN, 10/01/2005) 11/01/2005: In his only visit to Sierra Gaucha in 2005, President Lula formally triggers the first turbine UHE Monte Claro. (Source: site of the newspaper Zero Hora) UHE July 14 200 m