The careful management of scarcity

We reached the end of another year of hard work, where the fulfillment of institutional duties demanded the permanent dedication of ON S’s technical team and the intense relationship with all the institutions that participate in the management of theBrazilian electric sector.

All eyes were onto the supply conditions in the short term. We face a huge challenge regarding the management of limited resources available to meet the power load in a year marked by adverse hydrological conditions in river basins wherethe most important reservoirs are located. At the same time, we seek to ensure full availability of the existing thermoelectric park and use the transmission network for the exchange of large energy blocks in the Southern and Northern to Southeastern / Midwestern and Northeastern regions safely.

A particular mention must be made tothe need of easing the system’shydraulic constraintsto tackle the water crisis and ensure the hydroelectric park’s operating conditions. The decisions involved the Ministry of Mines and Energy, the Ministry of Environment, IBAMA, the Ministry of National Integration, regulators ANEEL and ANA, and stakeholders, plus the Operator. In some cases, the prioritization of water resources usage for hydropower generation led to judicial matters, requiring a lot of persuasion effortsfrom the Operator before the judicial authorities.

In system operation, this year’s major international event - the FIFA 2014 World Cup - ran smoothly, with the success of the measuresimplementedto provide an additional level of safety to the BIPS electrical operationin host cities.

The long-term projects have continued in 2014. Those prepare the Operator, so that its mission can be performed more effectively in the future. Among them, I highlight the operational studies and measures necessary for the usageof the system associated to the Madeira River transmission complex in its full capacity in the different stages of the BIPS integration process; the implementation of ONS’s Power Management Network (PMN) Phase Oneactivitiesand the differential treatment of installations considered strategic, in order to minimize the effects of multiple contingencies in the transmission system.

I would like to express my gratitude and recognition that one of the essential factors to achieve these results was the fruitful collaboration among all institutions responsible for energy sector management: the Ministry of Mines and Energy, the National Electric Energy Agency and other regulatory agencies, the Energy Research Company, the Chamber of Electricity Commercialization, the State Departments of Energy, each of the 362 staff members and the associations that represent them.

In the corporate field, we continue investing and believing in the appreciation of technical knowledge, in improving the training for teamworkskills enhancement and human development as ways to ensure the sustainability of the Operator.

Finally, on behalf of the ONS Board of Directors, I thank all who compose ONS, certain that internal integration is and will be a key differentiator for the results of our organization.

 

Hermes Chipp

CEO