“The effort to modernize the plants to a new level of operational efficiency highlights our purpose of building a legacy for sustainable development”
Zhao Jianqiang
CEO of CTG Brasil
For the fourth consecutive year, CTG Brasil releases the Annual Sustainability Report, which is prepared in accordance with the GRI Standards and covers the Aneel indicators for the operations with 100% control. The document is guided by the new materiality matrix, developed in 2019 based on a broad engagement process.
The forecasts and projections presented in this report may be impacted by the context of Covid-19 in 2020. CTG Brasil has been taking measures to protect its employees and combat the spread of the virus, and the effects of this pandemic will be presented in the next Annual Sustainability Report.
CTG Brasil's material topics
CTG Brasil is the second largest private power generator in the country. Is operates 12 hydropower plants (HPPs) and two small hydropower plants (SHP), in addition to holding stakes in three other HPPs and 11 wind farms. In the headquarters, in São Paulo (SP), all corporate support activities to operations are concentrated.
Sustainability management
Evident in the purpose and nature of CTG Brasil’s business, the commitment to sustainable development is ensured by the Sustainability Policy, structured in 2017. This instrument defines six pillars on which the company has been acting with the purpose of building its sustainability strategy.
How CTG Brasil operates in the country
In the Brazilian electricity sector, the value chain is organized into three major segments and two contracting environments.
Click on the drawing text boxes and understand how they work
and what is the role of CTG Brasil in each one.
Generation
Plants distributed throughout the country generate energy from renewable sources (such as hydro, solar and wind power) and non-renewable (such as thermal and nuclear). The operation of these facilities is coordinated by the National Electric System Operator (ONS). In order to guarantee supply throughout the territory, the agency evaluates the availability of the reservoirs and the national demand to determine the activation of each type of generator. As the second largest private generator in the country, CTG Brasil represents 5% of the total Brazilian generation capacity.
Transmission
The energy generated in the plants is transmitted over long distances by the transmission system, which forms a network to connect the generating units to the consumer centers. The energy generated by CTG Brasil travels through this infrastructure, operated by private or state-owned companies. These concessionaires are responsible for the constructions, maintenance and operation of the transmission networks and act independently of the generators.
Distribution
In municipalities, energy reaches homes, businesses, corporate buildings and industries through the distribution network. The energy distributors, the concessionaires responsible for this supply, buy the energy necessary to meet their concession areas from the generators, such as CTG Brasil.
Regulated Contracting Environment
In this trading system, the distributors buy energy through auctions organized under the rules of the regulatory agency Aneel and bilateral contracts. A portion of the energy generated in CTG Brasil’s plants is sold in this segment, also known as the captive market.
Free Contracting Environment
In this segment, large consumers (industries and retail chains, for example) or energy retailers can enter into bilateral contracts with generators to guarantee their supply. To commercialize energy in this way, CTG Brasil has teams dedicated to marketing to meet the needs of companies in the most diverse sectors that seek, through this direct purchase, more competitiveness in their business and the guarantee of the renewable origin of their energy matrix.
A comprehensive occupational health and safety management system (OHS) encompasses practices for accident prevention and the strengthening of culture in this area, in addition to risk identification and accident investigation, allowing the continuous improvement of guidelines and programs. This system is applicable to all employees and service providers and includes periodic corporate and CTG Corporation audits.
Environmental management
The structuring of CTG Brasil’s Integrated Management System, in 2019, raised the management of quality, safety and environmental aspects to the level of the best market practices. One of the premises in this system is to manage internal aspect in an assertive way with the same excellency already recognized in the activities around the plants.
BRL 17 million
invested in environmental management projects in the year
8,494 km
is the perimeter of CTG's reservoir edges, extension a little longer than the
length of the Brazilian coast and that would take about 60 days to be traveled on foot
50.9 thousand
hectares are preserved, an area equivalent to the area of the municipality of Maceió
The structuring of the CTG Brasil Academy throughout 2019 transformed into reality a new vision for the creation of the learning culture desired by the company. The value proposal is to provide development experiences that go beyond formal classroom learning and awaken in the professionals the protagonism of learning and improving themselves.
Throughout the year, corporate training, notably those that reinforce the commitment with safety, and on-the-job training drove the 29% growth in the average training hours per employee. In total, 50,800 hours were dedicated to employee training during the period.
Career and succession
To preserve this lifelong learning is as important as developing knowledge. With this objective, CTG Brasil started in 2019 the succession planning for the Operations & Maintenance (O&M) area.
Structured in 2019, the Succession Program aims to retain knowledge and facilitate the transition of the company’s talent bank in a sustainable manner. Efforts in 2020 will be focused on the consolidated vision of the successor map and the elaboration of individual development plans to prepare these future leaders.
Local communities
The investments made by CTG Brasil in projects that benefit the communities located close to the power plants promote education, culture and the encouragement of sports and advances in health and sanitation. Another highlight is the programs of visits to the plants, which received more than 7 thousand people in the last year.
CTG Brasil has a board dedicated to risk management and compliance issues. In 2019, risks related to cyber security were mapped, and communication and training actions directed at employees were strengthened.
Throughout the year, issues related to the management of hydrological risk, which affects the company's exposure to GSF (acronym for Generation Scaling Factor), also stood out. PL 3,975, which presents a solution for the treatment of non-hydrological risks attributed to generators through compensation in extension of the concession term, advanced in discussions in the Legislative.
Click here to learn more about our commitment to ehtics and integrity in all our activities
Dam safety
Although the probability of a rupture of these structures is very low, the impact caused by such an occurrence would be significant. Therefore, the issue of dam safety is considered strategic for CTG Brasil, conducted in a structured manner and in full compliance with the legal requirements established by the country’s regulatory agencies.
CTG Brasil has a Dam Safety Plan (PSB) that covers 100% of its hydropower plants. In addition, all the power plants have an Emergency Action Plan (EAP), a formal document that establishes the actions to be taken in the event of an emergency.
To increase availability of Jupiá and Ilha Solteira hydropower plants, the company approved an investment plan for the next decade. The first phase of this project was concluded in 2019, with the refurbishment and modernization of four turbines. The second phase of the project, expected to be concluded in 2021, includes intervention in eight generating units, as well as improvements to spillways and other auxiliary systems.
Watch the series of videos about CTG Brasil's modernization project
Operational efficiency
Two key initiatives, the Production Management System and the Safety Inspection Plan, were implemented in 2019 to further improve asset performance and availability.
Both initiatives were built with the partnership between Brazilian employees and Chinese specialists from China Three Gorges, incorporating the best practices to improve the entire operation and maintenance (O&M) structure of the generation park.
Economic performance
The financial results achieved by CTG Brasil show the assertiveness of its strategy and the capacity to generate asset value even in the challenging scenario of 2019.
BRL 4.8 bilion
in net operating revenue
BRL 1.3 billion
in net profit
BRL 595.6 million
in investments (CAPEX)
In 2019, the process of defining the projects to benefit from the research and development (R&D) resources required by the electricity sector regulations was a case of innovation, with the Technological Road Map.In the year, contracts were signed with 10 new projects, among which it is worth highlighting CTG Brasil’s participation in the Aneel Public Call focused on the development of efficient electric mobility solutions.
Click here to understand how we invest in the electricity sector in an innovative and strategic way
Innovation environment
In 2019, CTG Brasil annouced a partnership with the Santa Catarina Technology Association (ACATE) that foresees the creation of the Digital Innovation Lab, a space dedicated to the interaction between CTG Brasil, universities and startups within the new ACATE innovation hub in São Paulo.
In addition, an agreement with Senai, also released last year, involves the creation of the Clean Energy Innovation Hub, a space to connect the innovation ecosystem to the challenges of the electricity sector. Over the next five years, BRL 100 million will be invested.
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Screen readers represent an important assistive technology resource, enabling visually impaired people to access the virtual world by accessing the audio-written version of the Report. The main screen readers that allow reading this version are: JAWS, Virtual Vision, Voice Over, Orca and Specialized Dosvox Interface. Therefore, the site has been programmed to meet the parameters of the Web Content Accessibility Guidelines (WCAG) 2.0, level A.
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