Centrais Elétricas de Santa Catarina S.A. – CELESC is one of the largest companies in the Brazilian electricity industry, especially in the areas of power distribution, generation and transmission. Structured as a holding company in 2006, the Company has 2 wholly-owned subsidiaries: Celesc Distribuição S.A. and Celesc Geração S.A. It also controls Companhia de Gás de Santa Catarina (SCGÁS) and is a partner in Dona Francisca Energética S.A. (DFESA), Empresa Catarinense de Transmissão de Energia S.A. (ECTE), and Companhia Catarinense de Água e Saneamento (CASAN).
Its controlling shareholder is the State of Santa Catarina, holder of 50.18% of the Company’s common shares (ON), corresponding to 20.2% of the total Share Capital.
OWNERSHIP AND CORPORATE STRUCTURE
Celesc Distribuição S.A.
Celesc Distribuição is a wholly-owned subsidiary of the Company, it operates in the power distribution segment and serves, totally or partially, 285 municipalities, accounting for 3,455,062 consumer units. Of the total amount of municipalities, 264 are covered by the distributor’s concession agreement (263 in Santa Catarina and 1 in Paraná) and 21 municipalities are covered as registered warrants, in concession areas of other distributors (17 in Santa Catarina and 4 in Paraná). The public distribution of electricity under the registered warrants regime is in accordance with ANEEL’s regulations, by reason of technical and economic convenience, as the concessionaire holding the concession does not have a network. Additionally, Celesc D is responsible for supplying power to 4 concessionaires and 20 distribution permissionaires, which operate in Santa Catarina municipalities not served by Celesc Distribuição.
The company distributed 22,282 GWh in the first nine months of 2024 and its gross revenue reached R$12.1 billion. The map shows the coverage of CELESC’s operating area.
Celesc Geração S.A.
Celesc Geração is the wholly-owned subsidiary of the Celesc Group and operates in the electricity generation and transmission segments through the operation, maintenance and expansion of its own generating park, in addition to selling electricity and holding interest in power generation and transmission projects in partnerships with private investors.
The Company has its own generating park consisting of 13 hydroelectric plants, in which 12 are in operation and 1 in the process of being reactivated. It also has two photovoltaic solar power plants in the Remote Distributed Generation model.
The Company holds a minority interest in another six hydroelectric generation projects, developed in a partnership with private investors, under the Special Purpose Entity (SPE) format, all of them already in operation. In the transmission segment, the Company holds a minority interest in an SPE in partnership with EDP – Energias do Brasil.
All generation and transmission projects are located in the state of Santa Catarina.
Celesc G’s total generation capacity in operation on September 30, 2024, was 134.51 MW, of which 123.27 MW was from its own park and 11.24 MW from the generation park set up with partners – already proportional to Celesc G’s shareholding interest in these projects. The hydroelectric generating plant being reactivated will have 1 MW of installed capacity.
The table below shows the main features of the plants owned 100% by Celesc Geração:
Hydroelectric Generator Park | 100% of Celesc Geração S.A.
| Plants | Location | Final Concession Term | Installed Power (MW) | Physical Guarantee (MW) |
Physical Guarantee in Shares |
|---|---|---|---|---|---|
| Pery HPP | Curitibanos – SC | July 7, 2054* | 30.00 | 14.08 | 100% |
| Palmeiras HPP | Rio dos Cedros – SC | November 6, 2053* | 24.60 | 16.70 | 70% |
| Bracinho HPP | Schroeder – SC | November 6, 2053* | 15.00 | 8.80 | 70% |
| Garcia HPP | Angelina – SC | January 3, 2053* | 8.92 | 7.10 | 70% |
| Cedros HPP | Rio dos Cedros – SC | November 6, 2053* | 8.40 | 6.75 | 70% |
| Salto Weissbach HPP | Blumenau – SC | November 6, 2053* | 6.28 | 3.99 | 70% |
| Celso Ramos SHP | Faxinal dos Guedes – SC | May 31, 2039* | 13.92 | 6.77 | *** |
| Caveiras HGP | Lages – SC | ** | 3.83 | 2.77 | *** |
| Ivo Silveira HGP | Campos Novos – SC | ** | 2.60 | 2.03 | *** |
| Rio do Peixe HGP | Videira – SC | ** | 0.52 | 0.50 | *** |
| Piraí HGP | Joinville – SC | ** | 0.78 | 0.45 | *** |
| São Lourenço HGP | Mafra – SC | ** | 0.42 | 0.22 | *** |
| Total – MW | 115.27 | 70.16 |
(*) Plants that adhered to the renegotiation of the hydrological risk as per ANEEL REN No. 895/2020, thereby their concessions will be extended.
(**) Plants with a power of less than 5 MW are exempt from the concession act (Federal Law 13,360/2016)..
The following table shows solar projects launched in 2023:
Solar Generation Park | 100% Celesc G
| Plants | Location | Operational Start-Up | Installed Power (MW) |
|---|---|---|---|
| Lages PPP | Lages/SC | Feb/2023 | 1,00 |
| Lages PPP | Lages/SC | Jun/2023 | 1,00 |
| Campos Novos PPP | Campos Novos/SC | Sep/2023 | 1,00 |
| São José do Cedro PPP | São José do Cedro/SC | Dec/2023 | 2,50 |
| Modelo PPP | Modelo/SC | Sep/2024 | 2,50 |
| Total – MW | 8,00 |
The table below shows the main features of the generation projects developed in partnership with private investors:
Hydroelectric Generator Park | Minority Interest
| Plants | Location | Final Concession Term | Installed Power (MW) | Physical Guarantee (MW) |
Celesc Geração Interest | Equivalent Installed Power (MW) | Equivalent Physical Guarantee (MW) |
|---|---|---|---|---|---|---|---|
| Rondinha SHP | Passos Maia/SC | June 04, 2044* | 9.60 | 5.48 | 32.5% | 3.12 | 1.78 |
| Prata HGP | Bandeirante/SC | ** | 3.00 | 1.68 | 26.1% | 0.78 | 0.44 |
| Belmonte HGP | Belmonte/SC | ** | 3.60 | 1.84 | 26.1% | 0.94 | 0.48 |
| Bandeirante HGP | Bandeirante/SC | ** | 3.00 | 1.76 | 26.1% | 0.78 | 0.46 |
| Xavantina SHP | Xanxerê/SC | September 04, 2045 | 6.08 | 3.54 | 40.0% | 2.43 | 1.42 |
| Garça Branca SHP | Anchieta/SC | July 17, 2048 | 6.50 | 3.44 | 49.0% | 3.19 | 1.69 |
| Total – MW | 31.78 | 17.74 | 11.24 | 6.27 |
(*) Plant that adhered to the hydrological risk renegotiation as per ANEEL REN No. 895/2020 and will receive an extension of 336 days to the concession period.
(**) Power plants with a power equal to or less than 5 MW are exempt from the concession act (Federal Law 13,360/2016).
All the plants of the Company’s generating park and the plants in partnership with other shareholders, in the hydroelectric model, participate in the Electric Power Reallocation Mechanism – ERM, or MRE in Portuguese, a risk-sharing hydrological system in which participating plants transfer their generated energy surplus in relation to their physical guarantee to the plants that generated levels lower than their physical guarantee limits. In addition to the aforementioned projects, Celesc Geração holds equity interest in an electricity transmission project, containing 5 stretches of 230kV and 525kV transmission lines and a 525/230kV substation, as shown in the table below:
Transmission Projects | Minority Interest held by Celesc Geração S.A.
| Project | Location | Final Concession Term | Transformation Capacity (MVA) | Power Lines (km) | Celesc Geração Interest |
|---|---|---|---|---|---|
| EDP Transmissão Aliança SC | SC | August 11, 2047 | 1.344 | 433 | 10.0% |
The Annual Permitted Revenue (RAP) for this concession for the 2024/2025 cycle, as of June 1, 2024, under the terms of Homologatory Resolution No. 3,348/2024, was set at R$256.65 million.
Expansion Projects
The Company has a portfolio with projects to expand/reactivate its plants. As for the physical guarantee (new or additional), the Company seeks to obtain, on average, a 50% factor for the plants’ total capacity after their expansion/reactivation, which is a standard observed in other similar operational projects.
| Plants | Location | Final Concession Term | Installed Capacity (MW) | Power Increase (MW) |
Final Potency
(MW) |
Status |
|---|---|---|---|---|---|---|
| Maruim HGP | São José/SC | * | – | 1.00 | 1.00 | Under construction |
| Salto HPP | Blumenau/SC | November 6, 2053 | 6.28 | 23.00 | 29.28 | ANEEL/MME Analysis |
| Caveiras HGP | Lages/SC | * | 3.83 | 5.57 | 9.40 | Environmental Licensing |
| Cedros HPP | Rio dos Cedros/SC | November 6, 2053 |
8.40 |
10.60 | 19,00 | Basic Design Review |
| Palmeiras HPP | Rio dos Cedros/SC | November 6, 2053 | 24.60 | 0.50 | 25,10 | Basic Design Review |
| Total – MW | 43,11 | 40,67 | 83,78 |
The Distributed Generation Business Plan provides for the implementation of photovoltaic solar projects in the concession area of the Celesc Group distributor. The projects currently being implemented are listed below.
| PLANTS | Location | Installed Power (MW) | Expected Start-Up | Status |
|---|---|---|---|---|
| Videira PPP | Videira/SC | 1,00 | Oct/2024 | Under construction |
| Capivari PPP | Capivari de Baixo/SC | 3,00 | Jan/2024 | Under construction |
| Modelo II and III PPPs | Modelo/SC | 2,00 | Apr/2024 | Under construction |
| Total – MW | 6,00 |
PPP Videira, initially scheduled to come into operation in October 2024, was actually energized in October 2024. However, it should be noted that photovoltaic plants conceived in the distributed generation model do not have a regulatory process, so there is no authorizing act by the granting authority. Thus, from a technical point of view, entry into operation is associated with the release granted by the distributor to which the PPP will be connected, after the inspection has been carried out.
Energy Trading
In addition to electrical energy generation and transmission projects, Celesc Geração, since its incorporation, has been selling electric energy produced by its own generating park and by some of its subsidiaries. More recently, in compliance with strategic guidelines of the Master Plan, seeking to diversify the Group’s business aimed at offering new business and revenue and maximizing the benefits of its territorial presence, the Company approved the Energy Trading Business Plan, which expands Celesc G’s operations in this segment. We highlight that, on January 24, 2024, Celesc Geração obtained the approval to act as a Retail Trader with the Electric Energy Trading Chamber (CCEE), as resolved at its Board of Directors’ meeting number 1,379/2024. Therefore, the Company will be able to serve all Group A customers (high and medium voltage supply) who are eligible for migration to the Free Contracting Environment (ACL) in the retail modality, based on Ordinance 50/2022 issued by the Ministry of Mines and Energy (MME). The structuring of Celesc Geração as an Energy Retail Trading Agent follows the premises of the Company’s Master Plan and the trends of the electricity sector. The Company has been selling energy in the free wholesale market since 2006, however, the entrance into the free retail market represents an important opportunity for the Celesc Group as it reinforces its presence in the sector, diversifies its revenue sources and maximizes the benefits of its territorial presence. Accordingly, the Company has been positioning itself in the energy trading segment and related businesses, demonstrating a greater presence in the market, particularly in the state of Santa Catarina.
Subsidiary
Companhia de Gás de Santa Catarina – SCGÁS
SCGÁS operates a concession to distribute natural gas in all the territory of the state of Santa Catarina and its channeled gas distribution concession agreement, signed on March 28, 1994, is valid for 50 years (2044). The Company sells and distributes, on a daily basis, 2 million m³ of natural gas to 16.7 thousand customers. Celesc holds 51% of the Company’s common shares, and 17% of its total share capital.
Other Interests
Empresa Catarinense de Transmissão de Energia S.A. – ECTE
Established in August 2000, with the specific purpose of integrating the electricity transmission system in the state of Santa Catarina, by exploring electricity transmission lines in the eastern and coastal regions of Santa Catarina, the company is the concessionaire of the transmission line SE Campos Novos/SC – SE Blumenau/SC C2, 252.5 km long. It is the second project in operation under the new modality designed for the new cycle of the electricity industry. After winning Lot D of Auction 006/2011, in December 2011, ECTE formed its subsidiary ETSE – Empresa de Transmissão Serrana S.A., which covers the concession of SE Abdon Batista (525/230 kV) and SE Gaspar (230/138 kV), both located in the state of Santa Catarina, in order to integrate the power generation plants with the SIN, enable access to Celesc’s distribution system, and meet the increased power supply demand in the region of Vale do Itajaí. The affiliate ECTE holds Electricity Transmission Concession Agreement 088/2000, of November 1, 2000, with a term of 30 years. Its subsidiary ETSE is the holder of Electricity Transmission Concession Agreement 006/2012, of May 10, 2012, with a term of 30 years. Celesc holds 30.88% of the company’s total share capital.
Dona Francisca Energética S.A. – DFESA
An independent electric energy producer, DFESA holds an 85% interest in the Dona Francisca Hydroelectric Power Plant, built on the banks of the Jacuí river, in the state of Rio Grande do Sul. The plant has an installed capacity of 125 MW and assured energy of 80 MW. The project was inaugurated in May 2001. DFESA is the holder of Concession Agreement 188/98, of August 28, 1998. In 2021, the term of the concession increased from 35 to 39 years from the date the contract was signed. The extension was granted after adherence to Law 14,052/2020. Celesc holds 23.03% of the company’s share capital.
Companhia Catarinense de Água e Saneamento – CASAN
As a publicly-held company controlled by the Government of Santa Catarina, CASAN is engaged in the planning, execution, operation and exploration of drinking water supply and sanitation services in the municipal areas under concession. The Company currently serves 194 municipalities in the state of Santa Catarina and 1 municipality in the state of Paraná, providing nearly 2.8 million people with treated water and over 700 thousand people with collection, treatment and final disposal of sewage. Celesc holds 9.86% of the company’s total shares, the state of Santa Catarina holds 90.13%, and other shareholders hold 0.01%.
