Delft University of Technology
Faculty Mechanical, Maritime and Materials Engineering
Transport Technology / Logistic Engineering

L.T. van Halderen Research project for the Brazilian electricity market.
Internship, Report 2001.LT.5563, Transport Technology, Logistic Engineering.

Brazil's electricity market faces some large challenges. It's first challenge is, that as a result of under-investment in the electricity sector and insufficient rainfall in a country which relies for 90% on hydropower, Brazil is troubled by large electricity shortages. A solution for these shortages, could be the installation of so-called cogeneration projects within large companies. The second challenge is that the Brazilian electricity market will be deregulated in the next five years. A result of this deregulation process is that Brazilian electricity consumers will be free to choose their suppliers themselves.

Gerasul is Brazil's largest private electricity producer. It is a subsidiary of Tractebel, a Belgium company that on its turn is a subsidiary of SUEZ. SUEZ offers business solutions in water, power and waste management.

Within Gerasul, the two challenges in the electricity market lead to two different opportunities: companies to set up cogeneration projects with have to be found and a marketing strategy has to be developed to make sure that Gerasul is ready for the deregulation process. Research was performed for both opportunities.

To be able to select possible cogeneration clients, selection criteria were developed. A total of 17 companies could be selected while using these criteria and exploring the internet. The companies are presented in this report.

Some marketing guidelines already exist within Tractebel which are called TIS, Tractebel Industrial Solutions. These guidelines are used in the development of the marketing strategy. A project was started in order to develop the marketing strategy. The process to be followed was defined. Part of this process was the construction of a geographical database. The construction of this database would be part of the internship. The database provides general, financial and electrical information about Brazil's states. The database was constructed using computer program Excel and is presented in this report.

During the development of the database, not every manager spent as much time on the project as was desired by Tractebel. Therefore it seemed that not every manager gave the project the same priority as the Board of Directors. This could lead to a delay in the development of the marketing strategy.

Two conclusions can be drawn resulting from the research described above. Firstly, using internet is not the best way to select new clients for cogeneration projects, since it is extremely time consuming. Secondly, the TIS project is not handled with the priority it deserves. Gerasul's Board of Directors names the TIS-project as one of its mission statements, but the project doesn't appear to have the same priority for the people working on it.

The conclusions lead to several recommendations: for the cogeneration project, information has to be obtained in a different way. This can be done by contacting an organization called TCAPP or buying information. For the marketing strategy project it is recommended to restructure the marketing department to make sure marketing gets the priority it deserves. Joining this restructure, Gerasul could make the importance of marketing clear to its employees by organizing marketing-related activities.

Reports on Logistic Engineering (in Dutch)
Modified: 2002.02.13; , TU Delft / 3mE / TT / LT.