Financial Capital

Our responsible and structured financial operation has resulted in a good management of cash flow and controlled operational costs. In this way, we optimize investments and generate value for our shareholders, in a way that is aligned with our strategic planning.

The early delivery of a SHPP in Minas Gerais within the expected budget and two wind complexes in Rio Grande do Norte consolidated our leadership in the renewable sector in Brazil. We also had positive results in our Net Revenue, which grew 9.8% compared to 2015, and EBITDA, which reached R$ 993.1 million.

Net income was negative R$ 537.4 million, an increase of 16.7% compared to 2015, and we showed a net loss of R$ 143.7 million, greater than the R$ 48.7 million recorded in 2015. This was mainly a consequence of the increase to financial expenses and general and administrative expenses.

The consolidated net indebtedness amounted to R$ 6,407.9 million at the end of 2016, 6.4% greater than that of 2015, mainly due to the funds raised to strengthen the Company’s cash and make the necessary investments for the construction of Projects.

Infrastructure Capital

At the end of 2016, we had 91 assets located in 57 Brazilian municipalities and celebrated a new milestone: the installed capacity in operation of 2.1 GW, of which 1.3 GW are from wind power sources, 423.1 MW from SHPPs, 370 MW from biomass and 1.1 MW from solar. Our project portfolio consists of 39 SHPPs, 43 wind complexes, 8 biomass thermoelectric plants (UTEs) and a solar plant in operation, in addition to 1 SHPP (26.5 MW) and 1 wind complex under construction (48.3 MW). The total operating capacity was 2,054 MW.

The complexity of this infrastructure capital requires employees’ know-how to control and maintain equipment, as well as updating on new technologies, and knowledge of financial, regulatory, procurement, environment and safety issues. With this in mind, the Engineering Executive Board is implementing a new Project Management, with the purpose of analyze the processes in a far-reaching and integrated manner, preparing the employees to work the multiple relations that are established with contractors or suppliers.

Intellectual Capital

Collaborating for the maintenance and expansion of the intellectual capital represented by its employees is a continuous action in our Company, where we value innovation and promote the dissemination of knowledge about technologies in wind, water, solar and biomass power generation. To this end, we promote seminars and participate in internal and external events, forums and discussions, ensuring the competitiveness and efficiency of our projects in a relentlessly evolving market.

This collaboration takes place on three fronts:

  • Strategic Projects: with a medium degree of innovation (existing technologies, but little or not yet explored in Brazil or in the sector) that allow competitive advantages in the medium and long term. Examples: wind generation with storage, solid waste and others.
  • Projects of Operational Excellence: seeking to increase the efficiency of our assets and processes through Incremental innovation, developing and implementing innovative technologies that enable results in the short and medium term, such as reducing cost and improving operational efficiency.
  • Promoting the culture of innovation: by creating a collaborative environment, implementing actions that promote the engagement of employees and foster innovation in our day-to-day life.

Human Capital

The high internal acceptance of our human resources policy was evidenced by the results of the Climate Survey that took place in 2016.Held every two years, the goal is to pick up the good points as well as those that need to be improved. In 2016, the favorability index reached 70%, an improvement of 9 percentage points compared to the 2014 result (61%). Employee involvement also showed a clear participation rate: 93% of a total of 381 employees who were invited to answer online the 67 question survey.

This result is the outcome of working relations based on mutual respect and trust, and supported by a package of differentiated benefits, which includes: professional development and training programs; scholarships; private pension plan; support in legal, psychological, social, financial and speech therapy matters extended to the families of employees; health campaigns, with activities such as labor yoga, nutrition counseling and sports; performance assessment and talent management, in addition to the benefits provided by the Brazilian legislation.

In 2016, 109 new people were hired, and we provided a total of 32,276 hours of training that, distributed among 432 employees during the 12 months of the year, resulted in an average of 75 hours of training per employee, a number well above market practices in the sector.

We understand that health and safety are important values for conducting our activities. Therefore, we pay attention to all sectors, directing special attention to activities that involve risks for employees and contractors, such as work at height, in confined spaces, with electricity, among others. As a result of being careful in these situations, there were no records of accidents or illness related to these risks in 2016.


Relationship with Communities
The pleasant and healthy coexistence with the communities where our assets are located is sought through an ongoing contact and an open and transparent dialogue with local residents, who are often invited to participate in meetings and discussions in all the initial stages of a project. Moreover, whenever they wish, they can address the Social Communication Center, which provides direct assistance to the population, with communication, social assistance and psychology professionals. These structures aim at acting as speakers of the local population with the Company, receiving requests, doubts, and problems, among other requests by the local dwellers.
It’s important to note that our socio-environmental impact is considerably low compared to other infrastructure industries. Even so, we are concerned with establishing impact mitigation measures through specialized engineering and community-driven initiatives.
A good example of this type of early social-environmental impact assessment recently took place in the Pedra Cheirosa wind complex in Ceará. One specific study assessed the region and identified eight environmental impacts that affected the indigenous population. This allowed for establishing several programs between the local group and that of the Indigenous Social Communication and Management; Social-Environmental Education for Workers, with emphasis on indigenous issues; Support for Cultural Valuation and Ethno Development; Education and Health; and Heritage Education. Simultaneously, the indigenous community has been participating in the project implementation process since March 2016.

Risk Management and Planning

In 2016 a system of control and planning of the Environmental Licensing activities of the ventures and their respective Transmission Lines was developed in various stages of development. The aforementioned system has 154 licensing milestones, from the locational viability to the beginning of the commercial operation of the plant. The information of this monitoring, which results in the Maturity Index of the Environmental Licensing of the plants, the information of this monitoring, which results in the Maturity Index of the Environmental Licensing of the plants, is crucial for the report to the other areas affected by the phases of the project, and internal control and analysis of the Licensing team, when the activities are in progress.

Dialoging with Public Authorities

Considering the strategic nature of the energy generation activity, dialogue with the government sector is a mutual interest since both parties lead towards the development of the nation´s use of natural resources and environmental goods. With the purpose of contributing corporately to the other instances, the Company has an Institutional Relations area with priority action at the federal level, accompanying the issues related to marketing and regulation of the sector. Additionally, we have a specific Government Relations Management that provides support in all phases of our projects in the relations with local and state authorities.

Dialoguing with Society

Furthermore, in 2016 we worked to strengthen our relationship with the press and society. The press office work ensured the delivery of press releases, meeting the agenda and provided for interviews that contribute to disseminate information regarding our Company and the sector. Additionally, the launch of social media and the investment made in the area of communication brings us closer to society, helping to make our business even more transparent.

Relations with Suppliers

Our relationship with suppliers is structured in order to ensure attention to the social, environmental and labor issues involved in each type of service or supply. This identification is carried out through criteria that define the criticality of the supplier as low, medium or high, ensuring that the most critical ones are controlled by means of assessing specific criteria of sustainability, labor relations, business integrity, environmental management and health and safety.


Our Institutional Board is responsible for socio-environmental management, including the natural resources of our assets. This management is based on indicators and goals set annually, connected to business strategies. The work of our Sustainability team is constant, closely monitoring the development of the works and the day-to-day running of the projects in order to meet sustainability requirements.

In 2016, total Environmental Management expenses amounted to R$ 24 million, including costs for the implementation of 12 assets, one of which was a SHPP and 11 wind complexes for licensing activities and Environmental Programs in the works, and the environmental management of the remaining assets in operation.

We also pay great attention to the production and proper disposal of waste generated by the Company - in 2016, we generate a total of 55 tons of dry waste, 24 tons of wet and 39 tons of hazardous waste - as well as the adequate use of natural resources. In 2016, CPFL Renováveis used in its operations (including wind complexes, SHPPs and UTEs) 1,034,408 m³ of surface water, including wetlands, rivers, lakes and oceans, underground waters and rainwater reservoirs collected by the organization. In the same period, there was a significant reduction of 75% compared to 2015, when 4,194,162 m³ of water was used.

Biodiversity in Conservation Areas

We operate in several Brazilian biomes and are concerned with preserving the spaces where our assets are located, and currently we have 61.9 km² of areas for environmental protection, 27.1 km² of Permanent Conservation Areas – APP, and 34.8 km² of Legal Reserves. These areas have characteristics as follows: Atlantic Forest, coastal sandbank, coastal lagoons and dunes and cliffs, which means high biodiversity value. Although our activities are considered to be of low environmental impact, all units in operation and under implementation are duly licensed by the competent environmental agencies.

Safety of Dams

The National Policy for the Safety of Dams was established by Federal Law 12,334, from which Agência Nacional de Energia Elétrica (ANEEL - National Electric Power Agency) establishes, through Normative Resolution No. 696 dated December 15, 2015, that there is a Safety Plan for each power plant of the Electric System. In this sense, the EMERGENCY ACTION PLAN (PAE) emerges, which establishes technical and administrative procedures to be adopted in situations of potential emergency in the dam, in order to mitigate effects caused by potential rupture. Based on information sent by the companies, the Civil Protection of the municipalities involved is responsible for preparing the Contingency, Protection and Municipal Civil Protection Plans. We were the first Company in the state of São Paulo to have filed the PAE.