"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
Release date
23 November 2022
Status
Reference
Approved | 21/12/2022
20210751
Project name
Promoter - financial intermediary
ENEL LATAM - BRAZIL DISTRIBUTION (FL 20200823)
ELETROPAULO METROPOLITANA ELETRICIDADE DE SAO PAULO SA
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
USD 200 million (EUR 188 million)
USD 422 million (EUR 397 million)
Description
Objectives
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.
Environmental aspects
Procurement
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.
Related documents
Related projects
Documents
Environmental and Social Data Sheet (ESDS) - ENEL LATAM - BRAZIL DISTRIBUTION (FL 20200823)
Publication Date
24 Dec 2022
Document language
Main Topic
Lending
Document Number
151347429
Document Focus
Environmental Information
Document Type
Project Number
20210751
Sector(s)
Regions
Countries
Publicly available
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Link to source
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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
Story
How to avoid energy loss and exercise citizenship
Brazil is the largest single energy consumer in South America, accounting for about 36% of total energy consumption in the region. But in 2020 alone, the costs of electricity theft amounted to BRL 6.5 billion (around €1.15 million).
Enel São Paulo begins its work in peripheral areas with a study of the social and economic context. The company identifies community leaders and integrates them into its “Leadership Network” project, in which it reaches out to communities and identifies local needs and challenges.
It then continues with a social diagnosis by studying the daily habits and energy consumption of residents. It recruits local leaders to encourage action in the communities, educating residents about the risks of clandestine connections, and building awareness of the safe and conscious use of energy.
Enel São Paulo also introduces energy efficiency measures to the residents of the favelas, such as the renovation of electrical installations, replacement of lamps and refrigerators by more energy efficient models.
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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."
Opportunity for women
Women who receive emergency aid in the state of São Paulo represent 83% of total beneficiaries, according to the National Secretariat of Citizenship Income of the Ministry of Citizenship. This means that eight out of ten families in situations of greater social vulnerability are headed by women – who also pay their energy bills at the social tariff.
The projects developed by Enel São Paulo, especially those focused on social entrepreneurship and professional training, focus on women. These women have fewer opportunities, receive lower wages in the formal labour market, and are often victims of domestic violence.
“By encouraging social entrepreneurship, we give many women a chance to develop,” says Massotti. “They form productive groups and generate income from their entrepreneurial activities, while also building their self-esteem.”
These projects might also be considered as a way to address the global issue of the women’s underrepresentation in the energy sector. Women only account for 16% of the traditional energy sector, which sets a significant barrier to the sector going through a transformation process.
Why is energy efficiency important?
The electricity and fuel used to heat, cool and light buildings account for nearly 40% of energy consumption in Europe and are responsible for around 35% of greenhouse gas emissions. Buildings are the single biggest consumers of energy, so making them more efficient can have a big impact on the race to meet climate goals.
The challenge is immense. Nearly half of all European residential buildings were constructed before 1970, when materials, standards and techniques didn’t consider how much energy was consumed. Many of these older buildings will still be in use in 2050 and beyond. The European Commission estimates that 75 percent of buildings and housing could be made more energy efficient, while less than 1% of housing is renovated each year for energy efficiency.
Read what two experts in the field say about the importance of energy efficiency to stopping global warming.
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