If you go to the favelas and look up, you see all these cables connected to the power grid. Most of them are illegal.
Summary sheet
This investment is an allocation of funds under the Enel Energy & Renewable framework loan, consisting of electricity distribution investments in Brazil. These aim to extend and modernise the network, add new renewable energy capacity to the network, reduce losses and improve quality and safety of supply.
The project consists of the financing of the modernisation and extension of the Promoter's electricity distribution networks in the São Paulo region and of the installation of new remote control systems and protections of the grid, with the aim of increasing the its reliability, resilience and reducing the level of losses, leading to better quality and safety of energy supply. A portion of the investment will also enable the connection to additional renewable generation units.
The Bank reviewed the environmental and social capacity of the Promoter, including its organisation, processes and procedures, and deemed them to be good. Based on the information available, the programme is expected to have minor negative residual impacts and thus is acceptable for Bank financing from an environmental and social perspective. The Promoter undertakes to implement the project in accordance with the EIB's Environmental and Social Standards and in compliance with the national environmental legislation. Furthermore the programme does not entail components with significant, negative environmental and/or social impacts or requiring physical resettlement and/or impact on indigenous people in accordance with undertakings committed to under the Framework Loan 2020-0823. The Promoter undertakes not to allocate the Bank's funds to any components of the programme that require an environmental and social management plan (ESMP) before this has been sent for review to the satisfaction of the Bank.
The concession to the Promoter was awarded in a transparent and internationally competitive manner, the programme is not subject to public procurement rules. The procurement procedures followed by the Promoter are suitable for the project and satisfactory to the EIB.
Documents
Inside the project
How and Why
Providing legal electricity to the São Paulo favelas
Why
- In Brazil, energy theft is around 15% and over 50% in the north
- Residents in the favelas are socially excluded, living without legal registration
- Nearly 34.8 million of Brazilian households are led by women, many of them in the favelas
How
- Enel São Paulo provides electricity distribution at a subsidised price
- With a legal electricity bill, residents have proof of address, giving them access to services previously unobtainable.
- Energy efficiency measures, such as the renovation of electrical installations, and replacement of old appliances for more energy efficient models
Sectors & Countries
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The main objective of this project was to improve stability and reliability energy distribution in the favelas, but we ended up discovering that a majority of the households were led by women, which added a gender and a social integration perspective.
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