Votorantim Energy (VE) integrates and coordinates all self-generation operations for the Group's businesses. With 2,013 MW of installed capacity at 31 hydroelectric and 4 thermoelectric plants, in 2008 it met 62.5% of the conglomerate's demand.

Its function is to make energy supply viable at competitive prices and with acceptable risk as a way of guaranteeing supply during times of price uncertainty, and also as a way of supporting demand due to the Group's growing operations. It is also responsible for contracting the natural gas consumed by the Companies, which enables the company to be more flexible and productive in its negotiations.

It also performs the following activities: manages the electricity produced by the plants owned by the Group; allocates and controls energy demand; studies and proposes optimization measures; advises on matters related to the regulatory entities; and helps the Group's Companies analyze the viability of new energy sources.

In 2008, to ensure supply to the Companies, a contract was signed with Centrais Elétricas de Minas Gerais (Cemig), raising energy purchases from an average of 145 MW to an average of 670 MW until the year 2028.

In 2009 and the start of 2010, two new hydroelectric plants will begin operations: Salto do Rio Verdinho (58.2 MW) and Salto Pilão (average of 64.4 MW, in which it holds a 60% stake) and the Três Lagoas thermoelectric plant (142.5 MW). The new configuration, with 33 hydroelectric plants and 5 thermoelectric plants, will consolidate Votorantim Energy as the largest electricity self-generator in Brazil. The portfolio of projects includes, among other undertakings, the Paiquerê, Tijuco Alto and Santa Isabel plants, which add up to more than 1,500 MW.

Employees: 46

Productive assets

• 11 own integrated hydroelectric plants: Alecrim, Barra, França, Fumaça, Porto Raso, Salto do Iporanga, Santa Helena, Serraria, Ituparanga, Jurupará and Votorantim, all in the state of São Paulo
• 9 own non-integrated hydroelectric plants: Picada, Sobragi, Santana, São João, Monte Alto (Minas Gerais); Ourinhos and Piraju (São Paulo); Pedra do Cavalo (Bahia) and Santa Cruz (Paraná)
• 8 non-integrated hydroelectric plants in consortium: Barra Grande, Machadinho and Campos Novos (Santa Catarina); Canoas I, Canoas II (São Paulo); Igarapava and Amador Aguiar I and II (Minas Gerais); one plant in the final phase of construction (Salto Pilão – Santa Catarina)
• Santa Cruz Geração: includes the hydroelectric plants Paranapanema, Rio Novo and Boa Vista, all in the state of São Paulo
• 4 thermoelectric plants, and one in the final phase of construction

Performance in 2008

• Net Revenues*: R$ 1,685 million
• EBITDA**: R$ 508 million (30.1% margin)
• Investments: R$ 155 million (in Capex, not including acquisitions or investments in companies in which it owns a share)

Learn more about Votorantim Energy

* Includes participation in VBC Energia, which was sold at the beginning of 2009.
**EBITDA: earnings before interest, taxes, depreciation and amortization, or income before interest, taxes (on income), depreciation and amortization.