Eletrobras defines a new corporate identity

Eletrobras defines a new corporate identity

Eletrobras’ Board of Directors approved in a meeting held on July 31, its Strategic Plan 2020-2035. According to the company, the plan defines a new corporate identity. It establishes guidelines and objectives aimed at the growth and modernization of Eletrobras so that they are following the latest sector trends.

If the company is privatized, the forecast is that investments in generation and transmission will reach R $201.9 billion (USD 37 Billion) in the period R $12.6 billion (USD 2.3 Billion) per year. Without privatization, investments are expected to be R $95.3 billion (USD 17,6 Billion) by 2035, with R $6 billion (USD 1,1 Billion) annually. Without the resumption of works at the Angra 3 plant, investments until 2024 will be R $3.7 billion (USD 680 Million).

The strategic plan recalls the crash in the accounts that MP 579/2012 brought to the company’s coffers, which led to a loss of R $31 billion (USD 5.7 Billion) between 2012 and 2015 and a loss of 65%. This scenario led to the execution between the years 2016 to 2019 of significant adjustments to regain its balance, based on the increase of operational efficiency and reduction of indebtedness. On the other hand, there was a reduction in investment capacity and the distribution of dividends.

The Covid-19 pandemic was also addressed in the plan. For the state-owned company, there are risks such as the reduction in demand of uncertain scope. Therefore, over-supply and the postponement of new auctions will continue, in addition to delays in current investments. The pandemic should also postpone the discussion and on the bill to modernize the sector and the capitalization process of Eletrobras.

According to the company, decarbonization, diversification of sources, distributed generation, and digitalization will require adjustments to the current sector model. For the future, Eletrobras foresees the need to be robust to advance both in scenarios of steady growth and competition and in one of the moderate game and with low growth. These scenarios bet on ample modernization of the regulatory framework, expansion of demand, decentralized risk management, and diversification of the matrix, with an increase in renewables and the use of pre-salt gas in a generation.

Eletrobras has 51.1 GW of installed capacity, about 30% of the total and another 71.1 thousand kilometers of transmission lines, which is a 45% share. In 2019, investments should reach R $3.3 billion (USD 600 Million).

About Author

Arnaud Lefevre

Arnaud Lefevre is the Chief Executive Officer of Dynatom International. Arnaud is in charge of the international development of the business portfolio.