AES Tietê is a company in transformation, investing and believing in innovation to grow and generate value sustainably for its shareholders. Keeping pace with the changes happening in Brazil’s electricity industry, we have migrated from a business model focused on generating power at hydroelectric plants to one that delivers unique solutions to customers, with diversified energy sources and new technologies; leverages our capacity for growth.
In 2017, we completed the acquisition of the Alto Sertão II wind farm and the Boa Hora Solar Complex, in addition to an investment agreement for the construction of the Guaimbê Solar Complex. We also enabled the construction of the Água Vermelha Solar Complex, when we won the 25th New A-4 Energy Auction, focused on photovoltaic generation. These solar complexes will add about 300 MW in installed capacity in the State of São Paulo. The diversification of generating sources minimizes hydrological risks and directs us to meet our goal of achieving 50% of our EBITDA with non-hydroelectric power businesses by 2020.
On the services front, we have reinforced our commitment to forming partnerships and building innovative solutions to provide our customers with the utmost autonomy in managing the energy supply. Our teams in the commercial and market intelligence areas undergo continual training and keep an attentive eye on key trends, products and services that meet changing energy needs.
Our end-to-end work on projects, with capacity for planning and execution, guarantee development of customized and integrated systems, with distributed generation, purchase and sale of energy on the free market, cost reduction and energy efficiency being made possible. In addition, we strive to add value to our customers’ production chains by offering solutions to fulfill global ambitions for more sustainable businesses that have less environmental impact.
It was with this vision that we structured an innovative product in 2017, Mãos na Mata, a reforestation project for degraded areas in the catchment basins of our reservoirs, and started to commercialize renewable energy certificates in the international standard I-REC Standard, which guarantees traceability of the energy consumed by customers. These two solutions add value directly to our customers’ businesses, reducing carbon emissions from our operations.
We also made important advances in how we manage our assets, with the opening of a new Energy Generation Operations Center (COGE, its acronym in Portuguese). Located in the city of Bauru (São Paulo), the new space is equipped with the latest technology so that we can remotely operate and more agilely and efficiently work on our generation complexes. We also monitor our reservoirs from there in order to guarantee that areas of the Atlantic Forest restored with native species are being cared for.
These achievements were only possible with the dedication and efforts of our employees. We were once again ranked among the Best Companies to Work For in Brazil, recognition that attests to our commitment to building an ethical workplace that respects and values people, and we were selected for the 11th consecutive time to integrate B3’s Corporate Sustainability Index, which reflects the company’s commitment to good corporate governance, social responsibility, economic-financial management and environmental preservation practices.
We plan to invest an approximate total of R$ 980 million by 2021 in programs to modernize and maintain hydroelectric plants, in addition to building new assets. We will face significant challenges in the coming years and we are confident that with the commitment of all of us that are part of AES Tietê, we will achieve our strategic objectives and our vision of being recognized by our customers and shareholders as the main partner of innovative energy solutions in a safe way sustainable, reliable and affordable.
CEO of AES Tietê
We are a company that offers customized energy solutions for each client. We provide autonomy for companies from different sectors to decide on the most sustainable method for meeting their energy needs in every sense: efficiency, availability, reliability and innovation. Our business ranges from the sale of energy generated by hydroelectric plants and Wind Complexes (and soon by solar plants as well), to development of large and small renewable energy service and solutions.
Na frente de geração, expandimos nossa capacidade com a aquisição do Complexo Eólico Alto Sertão II (Bahia) e do Complexo Solar Boa Hora e com o acordo de investimento para a construção do Complexo Solar Guaimbê (ambos no interior de São Paulo). Ainda em 2017, obtivemos no Leilão A-4 o direito de comercializar, no mercado regulado, a energia gerada pelo Complexo Solar Água Vermelha, que também será construído no Estado de São Paulo.
In 2017, we consolidated our position as a platform for solutions that integrates new technologies, innovation, sustainability, agility
and technical know-how to offer renewable solutions and new energy services.
We are controlled by AES Holdings Brasil, the national investment vehicle of The AES Corporation (AES Corp.), one of the biggest electric energy sector groups, with offices in 17 countries as well as a power generation, distribution and storage portfolio. Our shares are traded in Level 2 of Corporate Governance of B3 SA and for 11 consecutive years we have been selected to compose the ISE (Corporate Sustainability Index – B3).
To ensure that businesses are developed according to ethical standards and transparency, we follow the AES Values Guide. In 2017, we did the latest review of the AES Values, which now include agility, reflecting the current context of transformation of the business environment and the company. We reinforce our values and guidelines of ethical conduct in an integrated manner through the AES Brasil Ethics and Compliance Program.
Our Sustainability Policy was revised in 2017 and is available to anyone interested on our website. The Policy guidelines on how we promote innovation, encourage the use of alternative and renewable energies, assure efficient operation of assets and reduce the risks associated with our activities.
The Sustainability Committee has the mission of advising the Board of Directors on the integration of sustainability into the management process. The body, whose regiment was restructured in 2016, proposes the strategy and goals and also monitors the implementation of the company's initiatives, considering the positive and negative impacts on the social, economic and environmental dimensions.
In line with the main demands and global trends, in 2017 we set up the Climate Change Subcommittee, made up of a multidisciplinary team of AES Tietê employees.
Throughout 2017, we made progress on aligning our Sustainable Strategic Planning with global sustainability challenges, deepening the relationship between the priority actions and indicators at our business with the 2030 Agenda proposed by the United Nations (UN). Sustainable Strategic Planning is revised annually and consolidates our vision, targets and objectives on a five-year horizon, setting the direction for generating value for our activities and solutions.
We seek to share the creation of a more flexible and sustainable business environment with our customers and, especially, to multiply the positive impacts of a lowcarbon economy, also for its own customers. All solutions offered to customers are sustainable because they are related to renewable energy generation or to reduce energy consumption.
In 2017, the Perceived Rate of Quality Satisfaction (ISQP, its acronym in Portuguese) was 89.6%. This result shows the integrated work of areas that carry out relations with our customers, providing customized service, as well as market actions done during the last year.
We have committed to having 50% of our EBITDA come from non-hydraulic energy sources and long-term regulated contracts by 2020. In 2017, we made important investments to reach this goal, increasing our generation capacity through wind and solar plants.
Our generation park contains 9 hydroelectric plants and 3 small hydro plants (SHPs) in São Paulo and one wind complex in Bahia. One of our main ongoing projects is modernization of these generation units, especially Água Vermelha, our largest hydroelectric plant. The new photovoltaic solar generation plants, in Ouroeste and Guaimbê, both in the interior of São Paulo, are scheduled to start operating in 2018.
One of the biggest advances we made in the period was the opening of the new Energy Generation Operations Center (COGE), located in Bauru (SP). Equipped with state-of-the-art technology, intelligent microgrid system and 456 photovoltaic solar panels, COGE provides even more efficiency in asset management and is one of the most modern technology and integrated operation centers in Brazil.
Last year, we recertify our Integrated Management System (SGI) according to ISO 14001 (environmental management), version 2015, and OHSAS 18001 (Health and Safety at Work). Investments in environmental management totaled R$ 14.486 million. We met the targets for accidents with withdrawals for our own employees and exceeded the rates established for registrable accidents according to OSHA criteria (Recordable Rate). There were also no fatal accidents in
our operations, nor occurrences involving communities around our plants and reservoirs.
We investe R$ 7.8 milion in Research and Development (R&D) in 2017, mainly focused on projects that consider the offer of new energy solutions, as well as their viability regarding sales, access and sustainability
Investments made in biodiversity projects go beyond a commitment to protecting biomes and are also aimed at contributing to advancing studies and research whose results could be applied to public policies or institutional environmental conservation initiatives
carried out since 2013 in partnership with Instituto Pró-Carnívoros. Monitors the conditions of survival of the puma in the Tietê River Basin. In 2017, this partnership expanded and also began to include a project to monitor the maned wolf, an endangered species in Brazi.
promotes repopulation of fish in generator plant reservoirs located on the Grande, Tietê, Pardo and Mogi-Guaçu Rivers. Each year, 2.5 million fingerlings are released of streaked prochilod, dorado, small-scaled pacu, piapara, piracanjuba and tabarana fish, grown in hydrobiology and aquaculture stations at the Barra Bonita and Promissão plants.
the initiative aims to create biotechnology techniques so that a juvenile fish is generated with genetic characteristics preserved using an already fertilized egg from another, non-endangered species – the spotted pim.
Our Safety Program, supported by the AES Brasil Sustainability Policy, is set up to strengthen a culture of safety among our professionals and covers a range of initiatives focused on assessing workplace safety conditions and spreading good practices and preventive actions.
Notable among these are safety inspections, which increased over the last year with the adoption of an app that enables one to make assessments with more agility using their mobile devices. Moreover, safety lectures and the safety report are additional practices frequently adopted in our operations.
In 2017, we achieved the targets set for the year in relation to accidents with time off for company employees. Likewise, our rates for accidents without time off (Recordable Rate) were better than the target set. There were also zero fatal accidents in our operations.
AES Tietê promotes permanent engagement with its stakeholders through the everyday relations of various company areas with stakeholders. In order to create a system of contact with these publics, in 2017 we implemented the Simbiose tool as a pilot project in the Reservoir Management area.
Using an online platform, we mapped key themes for interaction with outside representatives and over 300 people with direct relations with the company.