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 carries 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 Parana. The company is still responsible for the supply of electric power to the service of four concessionaires and 16 licensees, which operate in the other municipalities of Santa Catarina.

Celesc Distribuição is the second largest ICMS 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 revenue reached R$ 10.4 billion figures 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 through participation in power generation projects in partnerships with private investors.

On September 30, 2017, the company had its own generator park formed by 12 plants, of which 8 were Small Hydroelectric Plants – PCHs and 4 Hydroelectric Generating Plants – CGHs. 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 of 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 Generation:

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.

The company participates in Special Purpose Societies that enable new ventures in which Celesc Geração holds a minority interest. The following are 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 started investing in the repowering of its own plants and in the expansion of partnerships to make feasible projects for the construction of new projects, including the diversification of the energy matrix. The tables below present other enterprises 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 12.41 29.98 16.40 N/D** Project in Analysis at ANEEL
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** Inventory Study
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** Inventory Study
SHP Palmeiras Rio dos Cedros/SC 11/07/2046 24.60 16.70 0.75 0.48 25.35 17.18 N/D** Inventory Study
CGH Maruim São José/SC * 1.40 *** 1.40 *** 1.40 *** Jan/19 Environmental Licensing (LAI)
Total – MW     44.90 31.24 37.55 18.36 82.45 45.61    

* Power plants with a power of less than 3 MW are exempt from the concession act.
** Depends on regulatory procedures.
*** Defined with ongoing project review. Plant deactivated since the 1970s.

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 1S18 Project started in 1S15
Total – MW 25.65 12.33 9.16 4.47

All the plants of the generator park itself, Companhia Energética Rio das Flores and Xavantina Energética 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 that produced less, mitigating the risk of generation.

As disclosed in the Market Notice of 04/24/2017, the Consortium Aliança, formed by EDP – Energias do Brasil, with a 90.00% stake, and Celesc Geração, with a 10.00% interest, won the bid for Lot 21 of ANEEL Auction No. 05/2016, which constituted the Bidding for the Public Service Concession of Electric Power Transmission, including the Construction, Operation and Maintenance of Transmission Installations of the National Interconnected System, which occurred at B3, by offering a discount of the annual allowable revenue proposal (RAP) of R$ 171,824 million, compared to the maximum total 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 established 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 goal is 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 completion of the works is 60 months and the commercial start date is set 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 considering the number of municipalities supplied in Brazil. Santa Catarina is the third state with the largest natural gas distribution network (1,094 kilometers) and the third having the largest number of industries supplied with natural gas (227), as well as having the third largest network of vehicular gas stations (NGV) of the country (62).

With 100% grants for exploration of 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 every day. SCGÁS has a concession agreement for the operation of piped gas distribution services, signed on March 28, 1994, with a term of 50 years (2044). Below is a chart of Celesc’s stake in SCGás, having 51% of the common shares and 17% of the total share capital.

It should be noted that in 2013 the Santa Catarina State Attorney General’s Office (PGE), representing the Government of the State of Santa Catarina and Celesc, filed a motion to compensate SCGÁS, Petrobras Gás SA – Gaspetro, Mitsui Gás e Energia do Brasil Ltda. and Infragás S.A., questioning changes in the capital stock and the Shareholders’ Agreement in 1994, and obtained a favorable ruling in a lower court. Meanwhile, shareholders Mitsui Gás and Gaspetro filed an injunction, suspending the effects of the ruling in the lower court, and presenting appropriate judicial remedies. Currently, the effects of the sentence are suspended until the hearing of the stated case.

Other Participations

Empresa Catarinense de Transmissão de Energia (ECTE)

Founded with the specific purpose of exploring electric power transmission lines in the south, southeastern 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 the transportation of approximately 20% of the assured energy to supply demand in the concession area of Celesc Distribuição. In December 2011, the company acquired the right to build the Abdon Batista (525 / 230kV) and Gaspar (230 / 138kV) substations through its subsidiary Companhia de Transmissão Serrana S.A. – ETSE. These lines were energized in January 2015 and March 2015 respectively. The jointly-owned subsidiary ECTE holds an electricity 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 Rio Grande do Sul, with an installed capacity of 125MW and assured energy of 80MW. The venture was inaugurated in May 2001. The affiliate DFESA has a 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)

CASAN’s role is to plan, execute, operate and explore 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 Parana, serving a population of 2.5 million consumers with treated water and 319,000 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.

Specific Purpose Society established in 1996 for the implementation of the Cubatão Hydroelectric Power Plant, in the region of Joinville (SC), with installed capacity of 50MW. With a history of environmental obstacles, rejection of the litigation for the concession period and consequent economic impracticability for the development of the project, the enterprise requested the regulatory instituion to amicably terminate Concession Agreement No. 04/1996 (ANEEL Case No. 48100.003800 / 1995 -89). Celesc holds 40% of the Company’s Capital Stock, as follows:


Updated on 13 December 2017.