Corporate Profile


Centrais Elétricas de Santa Catarina S.A. (CELESC) is one of the largest companies in the Brazilian electric sector, particularly in the areas of energy distribution and generation. Structured as a holding company in 2006, the Company has two wholly-owned subsidiaries – Celesc Geração S.A. and Celesc Distribuição S.A. In addition, it holds a controlling interest in Companhia de Gás de Santa Catarina (SCGÁS) and is a partner of the companies Dona Francisca Energética S.A. (DFESA), Empresa Catarinense de Transmissão de Energia S.A. (ECTE), Companhia Catarinense de Água e Saneamento (CASAN), e and the project of Usina Hidrelétrica Cubatão S.A.

Its majority shareholder is the State of Santa Catarina, which holds 50.2% of the Company’s ordinary shares, corresponding to 20.2% of the Capital Stock.

Celesc Distribuição S.A.

The company takes energy to more than 2.8 million consumer units located in 264 municipalities in Santa Catarina (92% of the state’s territory) and in Rio Negro, in Paraná. The company is also responsible for the supply of electric power to service four concessionaires and 16 licensees, which operate in other municipalities in Santa Catarina.

Celesc Distribution is the second largest ICMS (Tax on the Circulation of Goods and Services) collector in Santa Catarina and the 6th largest Brazilian electricity distributor in supply revenue, the 7th in volume of distributed energy and the 10th in number of consumer units. On a monthly basis, the company distributes more than 1.8 million MWh and its annual gross sales reached the mark of R$ 10.4 billion in 2016.

Celesc Geração S.A.

Celesc Geração is the subsidiary of the Celesc Group that operates in the electric power generation segment through the operation, maintenance and expansion of its own generation park and participation in power generation projects in partnerships with private investors.

On June 30, 2017, the company had its own generating plant made up of 12 plants, of which 8 were Small Hydroelectric Plants – SHPs and 4 Hydroelectric Generating Plants – HGPs. In addition, the company holds a minority interest in another 8 SHPs developed in partnership with private investors, in the format of Special Purpose Companies (SPE). The total generation capacity by Celesc Geração in operation in the period was 114.8 MW, of which 106.75 MW were related to the owned plant and 8.05 MW related to the generator set established with partners – already proportional to the Celesc Geração shareholding in these enterprises. The table below presents the SHPs 100% owned by Celesc Geração.

Own Generating Plants – Plants 100% from Celesc Geração S.A

Plants Location End of
Concession
Installed
Potency
(MW)
Assured Energy
(MW)
SHP Pery* Curitibanos – SC 07/09/2047 30.00 14.08
SHP Palmeiras Rio dos Cedros – SC 11/07/2046 24.60 16.70
SHP Bracinho Schroeder – SC 11/07/2046 15.00 8.80
SHP Garcia Angelina – SC 07/07/2045 8.92 7.10
SHP Cedros Rio dos Cedros – SC 11/07/2046 8.40 6.75
SHP Salto Blumenau – SC 11/07/2046 6.28 3.99
SHP Celso Ramos Faxinal dos Guedes – SC 03/17/2035 5.40 3.80
SHP Caveiras Lages – SC 07/10/2018 3.83 2.77
HGS Ivo Silveira Campos Novos – SC (**) 2.60 2.03
HGS Rio do Peixe Videira – SC (**) 0.52 0.50
HGS Piraí Joinville – SC (*) 0.78 0.45
HGS São Lourenço Mafra – SC (**) 0.42 0.22
Total – MW 106.75 67.19

(*) Concession extended for another 30 years, becoming effective on July 10, 2017.
(**) Plants with a power of less than 3 MW are exempt from the concession act.

In November 2015, Celesc Geração was the winner of the 12/2015 Auction, acquiring the concession for the 30-year concession of the LOT C Hydroelectric Plants, when the Bracinho, Garcia, Cedros, Salto, and Palmeiras hydroelectric plants were bought. According to the Notice to the Market of November 25, 2015, the aforementioned Auction was carried out by the National Electric Energy Agency (ANEEL), in accordance with Law No. 12,783, dated January 11, 2013, as amended by Provisional Measure No. 688, of August 18, 2015, to contract concessions of Hydroelectric Power Plants in Allocation Regime for Quotas of their Physical Energy and Power Guarantee to the concessionaires and permission holders of public service of distribution of electric power of the National Interconnected System – SIN.

The company, as mentioned above, participates in Special Purpose Companies that enable new ventures in which Celesc Geração holds a minority interest. The following are the new projects that are already in operation:

Projects in operation | Celesc Geração S.A. holds minority Stake

Plants Location Concession Maturity Installed
Capacity
(MW)
Guaranteed
Energy
(MW)
% Stake
Celesc
Geração
Equivalent
Installed
Capacity
(MW)
Equivalent
Guaranteed
Energy
(MW)
SHP Rondinha Passos Maia/SC 05/10/2040 9.60 5.48 32.5% 3.12 1.78
SHP Prata Bandeirante/SC 05/05/2039 3.00 1.68 26.0% 0.78 0.44
SHP Belmonte Belmonte/SC 05/05/2039 3.60 1.84 26.0% 0.94 0.48
SHP Bandeirante Bandeirante/SC 05/05/2039 3.00 1.76 26.0% 0.78 0.46
SHP Xavantina Xanxerê/SC 04/07/2040 6.08 3.54 40.0% 2.43 1.42
Total – MW 25.28 14.30 8.05 4.57

In recent years, driven by the strategic positioning of increasing its own generation capacity, the Company began to invest in the repowering of its own plants and in the expansion of partnerships to make feasible projects to build new ventures, including the diversification of the energy matrix.

In January 2014, the Regulatory Body (Aneel Dispatch No. 115/2014) approved the repowering project of SHP Celso Ramos, with an increase in generation capacity of 5.4 MW to 12.6 MW. In March 2015, Celesc Geração obtained the authorization grant (Authorization Resolution No. 5,078) for the extension of said SHP, which includes the extension of the concession for another 20 years. The SHP has 5.4 MW of installed capacity and the expansion, consisting of a new generation circuit formed by a new water intake, adduction tunnel and power house with 2 generating units, will provide the installed power expansion for 12.8 MW.

The tables below present other projects under development by the company and their respective stages:

Projects under development – Celesc Geração S.A.

Plants Location Concession Expiration Installed Capacity (MW) Guaranteed Energy* (MW) Power Increase (MW) Increase of Guaranteed Energy (MW) Final Power (MW) Final Guaranteed Energy (MW) Date of entry of new capacity (MW) STATUS
SHP Celso Ramos Faxinal dos Guedes/SC 03/17/2035 5.62 3.80 7.20 3.76 12.82 7.56 Jul/18 Internal approvals
SHP Salto Blumenau/SC 11/07/2046 6.28 3.99 23.70 *** 29.98 *** N/D** Project Review
SHP Cedros Etapa 1 Rio dos Cedros/SC 11/07/2046 8.40 6.75 3.50 1.07 11.90 7.82 N/D** Analysis Project in ANEEL
SHP Cedros Etapa 2 Rio dos Cedros/SC 11/07/2046 8.40 6.75 1.00 0.64 9.40 7.39 N/D** Project Review
SHP Palmeiras Rio dos Cedros/SC 11/07/2046 24.60 16.70 0.75 0.48 25.35 17.18 N/D** Analysis Project in ANEEL
Total – MW     44.90 31.24 36.15 5.95 81.05 33.20    

* Power plants with capacity below 3MW are exempted from the concession act.
** It depends on regulatory procedures.
*** Guaranteed Energy estimate will be sent with the project review.

Projects under development | Celesc Geração S.A. holds minority Stake

Plants Localização End of Concession Installed Capacity (MW) Guaranteed Energy* (MW) % Stake Celesc Geração Equivalent Installed Capacity (MW) Equivalent Guaranteed Energy* (MW) Date of entry of new capacity Status
SHP Painel São Joaquim/SC 03/18/2043 9.20 4.80 32.5% 2.99 1.56 N/D Project Review
SHP Campo Belo Campo Belo do Sul/SC 05/19/2044 9.95 4.13 30.0% 2.99 1.24 N/D Project Review
SHP Garça Branca Anchieta/SC 03/13/2043 6.50 3.40 49.0% 3.19 1.67 2S17 Project started in 1S15
Total – MW 25.65 12.33 9.16 4.47

All the plants of the own generator park and Energy Company River of Flowers participate in the MRE (Energy Relocation Mechanism), a system used to transfer energy from those plants that produced in excess of the physical guarantee to those produced below, mitigating generation risks.

As disclosed in the Notice to the Market on April 24, 2017, the Consortium Aliança, formed by EDP – Energy of Brazil, with a 90% stake, and Celesc Geração, with a 10% stake, won the bid for lot 21 of Auction No. 05/2016 by ANEEL, regarding the Bidding for the Concession of Public Service of Transmission of Electric Energy, including the Construction, Operation and Maintenance of the Transmission Installations of the National Interconnected System, which happened in B3, offering a discount of 34.99%, or a proposal for a permitted annual revenue (RAP) of R$ 171,824 million, compared to the maximum amount of R$ 264,343 million established by Aneel. The conditions obtained in the auction result in a profitability of 12% real shareholder, above the target set in the Company’s Master Plan (10%).

Lot 21 was the third largest project offered at the auction, and demanded investments of around R$ 1.125 billion. It is composed of several facilities in the state of Santa Catarina, including three 525 kV transmission lines (Abdon Batista – Siderópolis 2, with 261 kilometers, Biguaçu – Siderópolis 2, with 149 kilometers, and Campos Novos – Abdon Batista with 39 kilometers); two 230 kV lines (Siderópolis 2 – Forquilhinha, with 28 kilometers, and Siderópolis 2 – Siderópolis, with 7.5 kilometers), besides the substation 525/230 kV Siderópolis 2. The facilities aim at the expansion of the system of the southern region of the state of Santa Catarina, reducing the dependence of the local thermal dispatch. The deadline for execution of the works is 60 months and the commercial start-up determined is for August 2022, with possibility of anticipation.

The table below summarizes the main information of the enterprise:

Transmitter Location Final Term of the Concession Km Line Substations Expected start date Status
EDP Transmissão Aliança SC Santa Catarina 11/08/2047 485,00 1 11/08/2022 Licensing

SCGÁS

SCGás is the second largest gas distributor in the number of municipalities served in Brazil. Santa Catarina is the third state in terms of the largest natural gas distribution network (1,094 km) and the third in terms of the largest number of industries served with natural gas (227), as well as having the third largest network of vehicular gas stations (NGV) in the country (62).

With 100% of the concession to operate natural gas distribution services in the territory of Santa Catarina, the company markets and distributes approximately 1.8 million cubic meters of natural gas to 8.9 thousand customers per day. SCGÁS has a concession contract for the operation of the piped gas distribution services, signed on March 28, 1994, for a period of 50 years (2044).

Below is a chart of Celesc’s stake in SCGás, 51% of which is common shares and 17% of total share capital.

Other Participations

Empresa Catarinense de Transmissão de Energia (ECTE)

established for the specific purpose of exploring electric power transmission lines in the South, Southeast and coastal regions of Santa Catarina, the company is a concessionary of the LT SE Campos Novos – SE Blumenau, with a length of 252.5 km. The line is responsible for transporting about 20% of the assured energy to supply demand in the Celesc Distribuição concession area. In December 2011, the company acquired the right to build the Abdon Batista (525/230kV) and Gaspar (230/138kV) substations, through its subsidiary Serrana Transmission Company S.A. – ETSE. These lines were energized in January 2015 and March 2015 respectively. The jointly-owned subsidiary ECTE holds a power transmission concession contract dated November 1, 2000, with a term of 30 years. For its subsidiary ETSE, the electricity transmission concession contract is dated May 10, 2012, with a term of 30 years. Celesc holds 30.88% of the Company’s capital stock, as shown below:

Dona Francisca S.A. (DFESA)

An independent power producer, DFESA owns the Dona Francisca Hydroelectric Power Plant, built on the Jacuí river in in Rio Grande do Sul, with an installed capacity of 125MW and assured energy of 80MW. The company was inaugurated in May 2001. The associated company DFESA holds the concession agreement dated August 28, 1998, with a term of 35 years. Celesc holds 23.03% of the Company’s capital stock, as shown below:

Companhia Catarinense de Água e Saneamento (CASAN)

A publicly traded mixed capital company controlled by the Government of the State of Santa Catarina, CASAN’s role is to plan, execute, operate and operate drinking water supply and sanitation services in its concession area. Currently, the services provided by the company cover 201 municipalities in the State of Santa Catarina and 1 in Paraná, serving a population of 2.5 million consumers with treated water and 319 thousand with collection, treatment and final destination of sanitary sewage. Celesc holds 15.48% of the Company’s total share capital, both common and preferred shares, as shown below:

Usina Hidrelétrica Cubatão S.A.

A Specific Purpose Company established for the implementation of the Cubatão Hydroelectric Power Plant, in the region of Joinville (SC), initially with an installed capacity of 50 MW. After analyzing the regulatory history and the history of environmental obstacles, the Company’s Board of Directors, at its meeting on September 18, 2014, recommended a study to be carried out by the project with a view to a possible alteration of the basic project, which has not yet been carried out. Celesc holds 40% of the Company’s Capital Stock, as follows:


Updated on 17 August 2017.