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Residential Electrical Energy                  Overview - the Brazilian
Consumption Profile in Brazil                  Economy post -1994
            Mônica Barros                       Brazilian government started in June 1994,
                                                and economic plan (named “Plano Real”)
        Reinaldo Castro Souza
                                                that dramatically reduced monthly inflation
            DEE, PUC-RIO                        from 80% to about 1%.


              August 1997                       Before the advent of “Plano Real”, lower
                                                income classes had no protection against
                                                daily inflation and currency devaluations,
                                                since they had limited access to baking
                                                services and products.
                info@mbarros.com           1                   info@mbarros.com              2




Overview - the Brazilian                       Overview - the Brazilian
Economy post -1994                             Economy post -1994
 At the onset of “Plano Real”, minimum          This, together with a stable currency,
 wage almost doubled in real terms (from        caused a massive income transfer to the
 roughly US$ 60 to US$ 100 monthly).            poorest individuals in society.

 The radical fall in inflation rates also       Even though credit restrictions have been
 contributed to increase, in real terms, the    imposed by Brazil’s Central Bank and
 disposable income of poor families, since      interest rates are among the highest in the
 now their money has the same purchasing        world, access to credit is relatively easy,
 power at the beginning or at the end of the    especially in the electronic goods and
 month.                                         automotive sectors.
                info@mbarros.com           3                   info@mbarros.com              4
Overview - the Brazilian                          Overview - the Electric Sector
Economy post -1994                                in Brazil
 All of these factors, together with               Most of the power plants are hydroelectric
 increasing electronics imports, caused a          plants, whose construction takes a very
 substantial impact on electrical energy           long period of time (around 10 years, in
 consumption, especially in the residential        some cases).
 sector.                                           The electric sector in Brazil has been
 Electricity rates (which are still under          going through dramatic changes since
 government control) have been raised              1995.
 above inflation rates, but this has not           State controlled companies (energy
 prevented consumption from experiencing           producers and distributors) are being sold
 unprecedented growth.                             to private groups.
                info@mbarros.com              5                   info@mbarros.com           6




Overview - the Electric Sector                    Overview - the Electric Sector
in Brazil                                         in Brazil
 The explosive growth in electrical energy         A survey on residential electricity
 consumption in Brazil for the past 3 years        consumption habits and holding of
 has made demand analysis fundamental              electrical appliances was done in 1988.
 for planning and control.
                                                   Due to technological advances and the
 Several efforts are currently being made to       economic changes just mentioned, this
 create a residential consumer profile in          1988 research is obviously outdated.
 different areas of the country.


                info@mbarros.com              7                   info@mbarros.com           8
Overview - the Electric Sector                       Overview - the Electric Sector
in Brazil                                            in Brazil
 This presentation is part of an ongoing              This profile will be able to identify
 consulting project developed for                     electricity spending habits and aid in the
 Eletrobrás, the Brazilian Electric Sector            implementation of Demand Side
 Holding Company.                                     Management (DSM) policies.

 The objective of this project is to create a         Effective implementation of DSM policies
 profile of residential consumers in all              is crucial at this moment, since Brazil is
 areas of Brazil.                                     on the verge of an electrical energy
                                                      collapse, due to unexpected and
                                                      unprecedented consumption growth.
                 info@mbarros.com               9                     info@mbarros.com             10




Overview - the Electric Sector                       Overview - the Electric Sector
in Brazil                                            in Brazil
 Currently, we are in the process of                  In 1990, residential consumption
 implementing surveys throughout Brazil.              corresponded to 20% of total electrical
                                                      energy consumed.
 Residential consumption is a major
 concern for electrical power companies in            In 1996, this participation grew to 27%,
 Brazil, since its share in total consumption         and in the years 2000-2002, it is estimated
 has been growing fast since 1990.                    at 33%.




                 info@mbarros.com               11                    info@mbarros.com             12
Overview - the Electric Sector                     Sampling Scheme used in the
in Brazil                                          survey
 The sample surveys currently in progress           Due to the diversity in social and
 are important for two reasons:                     economic indicators throughout the
   Demand Side Management                           country, an ordinary sample plan based
   Identification of factors that can serve         on the number of residential consumers in
   as explanatory variables in forecasting          each town or city is not appropriate, even
   models for residential consumption               when analyzing individual states.

                                                    We propose an alternative sampling plan,
                                                    where stratification is based on clustering.

                info@mbarros.com              13                    info@mbarros.com          14




Sampling Scheme used in the                        Available Data for each town or
survey                                             city
 These clusters are created from the notion         Total consumption
 of an “electrical distance” which                  Average household consumption
 compares consumption in each town with             Total number of households whose
 average values for each utility company.           average monthly consumption falls into
                                                    each of the 10 categories: 0-30 KWh, 31-50
 These clusters will serve as strata in a           KWh, 51-100 KWh, 101-150 KWh, 151-200
 stratified sampling procedure, in order to         KWh, 201-300 KWh, 301-400 KWh, 401-500
 reduce “within stratum” variance.                  KWh, 501-1000 KWh, above 1000 KWh.


                info@mbarros.com              15                    info@mbarros.com          16
We construct some additional
                                                      Cluster Analysis
variables, namely :
   Standardized Consumption = total town               Based on percentages of households in
   consumption standardized so that the whole          each of the 10 categories.
   sample of towns in each state is a variable with
   mean zero and variance one.                         We start the procedure by forming n
   Electrical Distance = Euclidean distance            clusters, where n is roughly 10 % of the
   computed from the percentages of households         number of towns in the state.
   in each category for a give town ( in               Algorithm used: Euclidean distances,
   comparison with percentages for the entire
                                                       single linkage clustering.
   state).
   Percentages of households in each of the 10
   consumption categories.

                  info@mbarros.com               17                   info@mbarros.com            18




Case Study: COELCE                                    Case Study: COELCE

 COELCE is the energy distributor in the               We start by forming 18 clusters, but
 State of Ceará, in the Northeastern part of           several of those contained less than 3
 Brazil.                                               towns or villages.
 This clustering procedure is applied to all           Thus, a sampling procedure based on
 towns in the State, except for the capital            each of these clusters would not be cost-
 city (Fortaleza), which was subject to a              efficient, which lead us to reduce the
 separate survey.                                      number of clusters used.
 Most towns and villages in the state are              This reduction is done until each cluster
 characterized by very small average                   formed contains a “reasonable” number of
 electricity consumption.                              towns.
                  info@mbarros.com               19                   info@mbarros.com            20
Case Study : COELCE                            Case Study : COELCE
                                                 10 Clusters based on percentages of
 In COELCE’s case we used 10 clusters,               households in each category

 but 6 of those consisted on 3 or less           Cluster    num_obs      average                 average
 towns, and were later condensed in 2 new           1          50
                                                                       consumption
                                                                           55.1
                                                                                       std. dev. distance std. dev.
                                                                                          4.2      0.22     0.03
 clusters.                                          2
                                                    3
                                                               22
                                                                1
                                                                            51
                                                                           45.9
                                                                                         3.9
                                                                                       ******
                                                                                                   0.27
                                                                                                   0.31
                                                                                                            0.03
                                                                                                           ******
                                                    4           3          60.7           1.5       0.2     0.01
                                                    5           4           67             7       0.17     0.04
                                                    6          63          68.1           5.6      0.14     0.03
 Moreover, the total number of households           7          23          87.4           6.9      0.07     0.02
                                                    8           2           72           0.21      0.14       0
 in these small clusters is negligible, and         9           3          43.2           2.5      0.35     0.01
                                                    10          3          38.8           3.3      0.41     0.03
 their combination doesn’t lead to
                                                ENTIRE      num_obs      average       std. dev. average std. dev.
 significant losses in precision.               SAMPLE                 consumption               distance

                                                               174          63.6         13       0.18      0.08

                info@mbarros.com          21




Case Study: Rio de Janeiro                     5 geographical zones

 We conducted a preliminary study in the        South (19 neighborhoods) - most affluent,
 city of Rio de Janeiro.                        but includes some shanty towns with
 The basic aim was to identify similar          totally different consumption patterns.
 electricity consumption patterns among
 154 neighborhoods that comprise the city.      North (26 neighborhoods) - some areas
 Originally, the city was divided into five     are upper medium class, but generally
 zones using a geographical criterion.          lower consumption than on the south
 Significant differences among each of the      zone.
 five zones are observed.

                info@mbarros.com          23                                 info@mbarros.com                         24
Descriptive Statistics - whole
5 geographical zones
                                                sample
 West (26 neighborhoods) - mixed, some
 new residential areas but others with rural                                                                                                           average                                                                                   std.dev.                                                                             m um
                                                                                                                                                                                                                                                                                                                                       inim                                                                                m um
                                                                                                                                                                                                                                                                                                                                                                                                                            axim
 characteristics.                                           consumption                                                                                             192.1                                                                              54.8                                                                                                    97                                                           492
                                                                         p0-50                                                                                         13.9                                                                                5.6                                                                                           5.0                                                                33.9

 Suburban (71 neighborhoods) - low                                     p51-100                                                                                         17.6                                                                                5.3                                                                                           3.4                                                                32.0
 income areas, low energy consumption.                                 p101-150                                                                                        19.2                                                                                3.9                                                                                           6.9                                                                26.7
                                                                       p151-300                                                                                        34.5                                                                                6.9                                                                                     13.4                                                                     48.8
 Center (15 neighborhoods) - around                                    p301-500                                                                                        10.6                                                                                5.3                                                                                           1.9                                                                29.2
 downtown, some low income                                              p >501                                                                                             4.2                                                                             6.3                                                                                                  0                                                           52.6
 neighborhoods.

                info@mbarros.com           25




Case Study : Rio de Janeiro                     Average Consumption by zone
                                                                                                                                                                                 ZONA: centro
 We consider only 6 categories of energy
                                                                       300




                                                 consumo médio
                                                                       250
                                                                                                                                                                                                                                                                                                                                                                                                                            Center
 consumption, namely:                                                  200

                                                                       150

   0-30 KWh
                                                                       100




                                                                              CAJU




                                                                                                                                                                                           COSME VELH
                                                                                                                                             CENTRO




                                                                                                                                                                                                                  ESTACIO


                                                                                                                                                                                                                                           FLAMENGO
                                                                                                  CATETE




                                                                                                                                                                    CIDADE NOV




                                                                                                                                                                                                                                                                GAMBOA


                                                                                                                                                                                                                                                                                     GLORIA


                                                                                                                                                                                                                                                                                                            LARANJEIRA


                                                                                                                                                                                                                                                                                                                                      MANGUEIRA


                                                                                                                                                                                                                                                                                                                                                               SANTA TERE


                                                                                                                                                                                                                                                                                                                                                                                    SANTO CRIS


                                                                                                                                                                                                                                                                                                                                                                                                         SAUDE
                                                                                                                        CATUMBI
   31-50 KWh
                                                                                                                                                                                                                 BAIRRO
   51-100 KWh
                                                                                                                                                                                          ZONA: norte
   101-150 KWh                                                          400
                                                       consumo médio


                                                                        350

   151-300 KWh
                                                                        300
                                                                        250
                                                                                                                                                                                                                                                                                                                                                                                                                            North
                                                                        200
   301-500 KWh                                                          150
                                                                        100
                                                                                 ALTO B VIS



                                                                                                           BANCARIOS



                                                                                                                                    CACUIA

                                                                                                                                              COCOTA



                                                                                                                                                                           FREGUESIA




                                                                                                                                                                                                                 JD CARIOCA

                                                                                                                                                                                                                              JD GUANABA

                                                                                                                                                                                                                                            MARACANA



                                                                                                                                                                                                                                                                   PAQUETA




                                                                                                                                                                                                                                                                                                           PORTUGUESA



                                                                                                                                                                                                                                                                                                                                       RIBEIRA



                                                                                                                                                                                                                                                                                                                                                                    S CRISTOVA

                                                                                                                                                                                                                                                                                                                                                                                 TAUA

                                                                                                                                                                                                                                                                                                                                                                                             TIJUCA

                                                                                                                                                                                                                                                                                                                                                                                                      VILA ISABE
                                                                                                                                                       ENGENHO NO



                                                                                                                                                                                       GALEAO




                                                                                                                                                                                                                                                       MONERO
                                                                                              ANDARAI



                                                                                                                       C UNIVERSI




                                                                                                                                                                                                                                                                             PCA BANDEI




                                                                                                                                                                                                                                                                                                                                                  RIO COMPRI




                                                                                                                                                                                                                                                                                                                                                                                                                   ZUMBI
                                                                                                                                                                                                        GRAJAU




                                                                                                                                                                                                                                                                                              PITANGUEIR



                                                                                                                                                                                                                                                                                                                         PR BANDEIR
   above 501 KWh
                                                                                                                                                                                                                         BAIRRO



                info@mbarros.com           27
Average Consumption by zone                                                                                                                                                                                                                                                                                           Average Consumption by zone
                                                                                                          ZONA: oeste
                  280
                                                                                                                                                                                                                                                                                                                                                                                                                 ZONA: sul
 consumo médio



                  260
                  240
                                                                                                                                                                                                                                                                                                      West                          600




                                                                                                                                                                                                                                                                                                                    consumo médio
                  220
                                                                                                                                                                                                                                                                                                                                    550
                  200
                  180                                                                                                                                                                                                                                                                                                               500
                                                                                                                                                                                                                                                                                                                                    450
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               South
                  160                                                                                                                                                                                                                                                                                                               400
                  140                                                                                                                                                                                                                                                                                                               350
                  120                                                                                                                                                                                                                                                                                                               300
                                                                                                                                                                                                                                                                                                                                    250




                                                                                                                                                                                                                                                         SANTISSIMO
                            ANIL




                                                          CAMPINHO
                                   B.GUARATIB




                                                                                               COSMOS




                                                                                                                               GARD AZUL
                                                                                                        CURICICA
                                                                                                                   FREGUESIA


                                                                                                                                           GUARATIBA

                                                                                                                                                       INHOAIBA


                                                                                                                                                                               P.GUARATIB

                                                                                                                                                                                            PACIENCIA
                                                                                                                                                                                                        PCA SECA

                                                                                                                                                                                                                   PECHINCHA
                                                                                                                                                                                                                               S VASCONCE




                                                                                                                                                                                                                                                                      SEPETIBA

                                                                                                                                                                                                                                                                                 TANQUE
                                                                                                                                                                                                                                                                                          TAQUARA
                                                CAMORIM


                                                                     CAMPO GRAN
                                                                                  CIDADE DEU




                                                                                                                                                                  JACAREPAGU




                                                                                                                                                                                                                                            SANTA CRUZ
                                                                                                                                                                                                                                                                                                                                    200
                                                                                                                                                                                                                                                                                                                                    150
                                                                                                                                                                                                                                                                                                                                    100
                                                                                                                                  BAIRRO                                                                                                                                                                                             50
                                                                                                                                                                                                                                                                                                                                      0




                                                                                                                                                                                                                                                                                                                                        BARRA TIJU




                                                                                                                                                                                                                                                                                                                                                                                                                     JD BOTANIC




                                                                                                                                                                                                                                                                                                                                                                                                                                                LEBLON




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       SAO CONRAD
                                                                                                                                                                                                                                                                                                                                                                                                                                                                RC BANDEIR




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           VARG.GRAND
                                                                                                                                                                                                                                                                                                                                                     BOTAFOGO
                                                                                                                                                                                                                                                                                                                                                                COPACABANA
                                                                                                                                                                                                                                                                                                                                                                             GAVEA
                                                                                                                                                                                                                                                                                                                                                                                     HUMAITA
                                                                                                                                                                                                                                                                                                                                                                                               IPANEMA
                                                                                                                                                                                                                                                                                                                                                                                                         ITANHANGA


                                                                                                                                                                                                                                                                                                                                                                                                                                  JOA
                                                                                                                                                                                                                                                                                                                                                                                                                                        LAGOA


                                                                                                                                                                                                                                                                                                                                                                                                                                                         LEME


                                                                                                                                                                                                                                                                                                                                                                                                                                                                             ROCINHA


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    URCA


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        VARG.PEQUE
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     VIDIGAL
                                                                                                        ZONA: suburbana
                            240
            consumo médio




                            220
                            200
                            180
                            160
                                                                                                                                                                                                                                                                                                    Suburban
                            140
                            120                                                                                                                                                                                                                                                                                                                                                                                               BAIRRO
                            100
                                        BARROS FIL




                                        VIC.CARVAL

                                        VILA PENHA
                                          ABOLICAO
                                      AGUA SANTA
                                          B RIBEIRO

                                     BONSUCESSO


                                            COLEGIO

                                          DEODORO
                                     ENG DENTRO
                                      ENG RAINHA
                                          H GURGEL
                                           INHAUMA
                                             JACARE
                                       JD AMERICA

                                      MAG BASTOS
                                     MANGUINHOS
                                       MARIOPOLIS
                                              OLARIA

                                             PAVUNA
                                              PENHA
                                             PILARES
                                       Q BOCAIUVA
                                              RAMOS
                                        LINS VASCO




                                        RIACHUELO
                                              ROCHA
                                            SAMPAIO



                                       VILA KOSMO
                                         CACHAMBI
                                      CAVALCANTI




                                        VL VALQUEI
                                      COSTA BARR




                                      TODOS SANT
                                      PADRE MIGU




                                            TURIACU




                                                                                                                                                BAIRRO




Cluster Analysis of                                                                                                                                                                                                                                                                                                   Cluster Analysis of
neighborhoods                                                                                                                                                                                                                                                                                                         neighborhoods
        We base the cluster procedure on the                                                                                                                                                                                                                                                                                                                                                                                                                                                        a ve ra g e                                a v e ra g e
                                                                                                                                                                                                                                                                                                                                    C lu s te r                              # o bs .                        a v e ra g e                                  s td . d e v.                            % a b o ve                                 % b e lo w
        percentages of households in each of the                                                                                                                                                                                                                                                                                                                                                         c o n s u m p tio n                                                                        3 0 1 KW h                                 1 5 1 KW h
                                                                                                                                                                                                                                                                                                                                       11                                        1                              9 7 .0                                          ****                                     2 .4                                      8 4 .3
        6 energy consumption categories.                                                                                                                                                                                                                                                                                               2                                         8                             1 1 8 .8                                          6 .5                                    4 .0                                      7 5 .1
                                                                                                                                                                                                                                                                                                                                       4                                        28                             1 4 9 .3                                         1 1 .1                                   7 .3                                      6 4 .0
        We created 12 clusters, of which 6 contain                                                                                                                                                                                                                                                                                     9
                                                                                                                                                                                                                                                                                                                                       5
                                                                                                                                                                                                                                                                                                                                                                                 2
                                                                                                                                                                                                                                                                                                                                                                                 1
                                                                                                                                                                                                                                                                                                                                                                                                               1 7 5 .0
                                                                                                                                                                                                                                                                                                                                                                                                               1 8 6 .0
                                                                                                                                                                                                                                                                                                                                                                                                                                                                1 9 .8
                                                                                                                                                                                                                                                                                                                                                                                                                                                                ****
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        1 5 .4
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        1 6 .1
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   6 0 .3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   6 6 .9
        only one neighborhood.                                                                                                                                                                                                                                                                                                         1                                        99                             1 9 2 .7                                         2 4 .8                                  1 4 .1                                     4 7 .5
                                                                                                                                                                                                                                                                                                                                       10                                        1                             2 4 6 .0                                         ****                                    2 7 .1                                     4 6 .6
        2 other clusters contain 2 neighborhoods                                                                                                                                                                                                                                                                                       8
                                                                                                                                                                                                                                                                                                                                       3
                                                                                                                                                                                                                                                                                                                                                                                 2
                                                                                                                                                                                                                                                                                                                                                                                 9
                                                                                                                                                                                                                                                                                                                                                                                                               2 6 5 .0
                                                                                                                                                                                                                                                                                                                                                                                                               2 9 7 .0
                                                                                                                                                                                                                                                                                                                                                                                                                                                                1 5 .6
                                                                                                                                                                                                                                                                                                                                                                                                                                                                1 9 .1
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        2 9 .2
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        3 6 .9
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   2 5 .1
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   3 1 .8
        each.                                                                                                                                                                                                                                                                                                                          7
                                                                                                                                                                                                                                                                                                                                       12
                                                                                                                                                                                                                                                                                                                                                                                 1
                                                                                                                                                                                                                                                                                                                                                                                 1
                                                                                                                                                                                                                                                                                                                                                                                                               3 9 1 .0
                                                                                                                                                                                                                                                                                                                                                                                                               4 0 8 .0
                                                                                                                                                                                                                                                                                                                                                                                                                                                                ****
                                                                                                                                                                                                                                                                                                                                                                                                                                                                ****
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        5 5 .6
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        5 6 .1
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   1 6 .8
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   2 4 .7
                                                                                                                                                                                                                                                                                                                                       6                                         1                             4 9 2 .0                                         ****                                    6 4 .9                                     1 9 .8

                                                                                                                                                                                                                                                                                                                                     W h o le
                                                                                                                                                                                                                                                                                                                                    S a m p le                                154                                        1 9 2 .1                               5 4 .8                                     1 4 .8                                 5 0 .7



                                                                                                                                                                                                   info@mbarros.com                                                                                            31
Conclusions                                       Conclusions

 In both cases, the clustering procedure           Moreover, some of the neighborhoods
 results in groups that are much more              singled out by the cluster procedure are
 homogeneous than the entire sample.               clear “outliers”, that is, do not represent
                                                   the entire population being sampled.
 In the Rio de Janeiro case study, even in
 cluster 1, which contains roughly 2/3 of          In the Rio de Janeiro case study, clusters
 the sample, there is a considerable               6, 7 and 12 represent very high income
 reduction of variance, when compared              areas of the city, as reflected by their
 with the whole sample of neighborhoods.           energy consumption levels.

                info@mbarros.com             33                    info@mbarros.com              34




Conclusions

 Also, cluster 11 indicates the
 neighborhood with lowest average
 consumption among all 154 sampled.

 Surprising as it might be, clusters 6
 (highest average consumption) and 11
 (lowest average consumption) are
 geographically contiguous.


                info@mbarros.com             35

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Residential%20 Electrical%20 Energy%20 Consumption%20 Profile%20in%20 Brazil

  • 1. Residential Electrical Energy Overview - the Brazilian Consumption Profile in Brazil Economy post -1994 Mônica Barros Brazilian government started in June 1994, and economic plan (named “Plano Real”) Reinaldo Castro Souza that dramatically reduced monthly inflation DEE, PUC-RIO from 80% to about 1%. August 1997 Before the advent of “Plano Real”, lower income classes had no protection against daily inflation and currency devaluations, since they had limited access to baking services and products. info@mbarros.com 1 info@mbarros.com 2 Overview - the Brazilian Overview - the Brazilian Economy post -1994 Economy post -1994 At the onset of “Plano Real”, minimum This, together with a stable currency, wage almost doubled in real terms (from caused a massive income transfer to the roughly US$ 60 to US$ 100 monthly). poorest individuals in society. The radical fall in inflation rates also Even though credit restrictions have been contributed to increase, in real terms, the imposed by Brazil’s Central Bank and disposable income of poor families, since interest rates are among the highest in the now their money has the same purchasing world, access to credit is relatively easy, power at the beginning or at the end of the especially in the electronic goods and month. automotive sectors. info@mbarros.com 3 info@mbarros.com 4
  • 2. Overview - the Brazilian Overview - the Electric Sector Economy post -1994 in Brazil All of these factors, together with Most of the power plants are hydroelectric increasing electronics imports, caused a plants, whose construction takes a very substantial impact on electrical energy long period of time (around 10 years, in consumption, especially in the residential some cases). sector. The electric sector in Brazil has been Electricity rates (which are still under going through dramatic changes since government control) have been raised 1995. above inflation rates, but this has not State controlled companies (energy prevented consumption from experiencing producers and distributors) are being sold unprecedented growth. to private groups. info@mbarros.com 5 info@mbarros.com 6 Overview - the Electric Sector Overview - the Electric Sector in Brazil in Brazil The explosive growth in electrical energy A survey on residential electricity consumption in Brazil for the past 3 years consumption habits and holding of has made demand analysis fundamental electrical appliances was done in 1988. for planning and control. Due to technological advances and the Several efforts are currently being made to economic changes just mentioned, this create a residential consumer profile in 1988 research is obviously outdated. different areas of the country. info@mbarros.com 7 info@mbarros.com 8
  • 3. Overview - the Electric Sector Overview - the Electric Sector in Brazil in Brazil This presentation is part of an ongoing This profile will be able to identify consulting project developed for electricity spending habits and aid in the Eletrobrás, the Brazilian Electric Sector implementation of Demand Side Holding Company. Management (DSM) policies. The objective of this project is to create a Effective implementation of DSM policies profile of residential consumers in all is crucial at this moment, since Brazil is areas of Brazil. on the verge of an electrical energy collapse, due to unexpected and unprecedented consumption growth. info@mbarros.com 9 info@mbarros.com 10 Overview - the Electric Sector Overview - the Electric Sector in Brazil in Brazil Currently, we are in the process of In 1990, residential consumption implementing surveys throughout Brazil. corresponded to 20% of total electrical energy consumed. Residential consumption is a major concern for electrical power companies in In 1996, this participation grew to 27%, Brazil, since its share in total consumption and in the years 2000-2002, it is estimated has been growing fast since 1990. at 33%. info@mbarros.com 11 info@mbarros.com 12
  • 4. Overview - the Electric Sector Sampling Scheme used in the in Brazil survey The sample surveys currently in progress Due to the diversity in social and are important for two reasons: economic indicators throughout the Demand Side Management country, an ordinary sample plan based Identification of factors that can serve on the number of residential consumers in as explanatory variables in forecasting each town or city is not appropriate, even models for residential consumption when analyzing individual states. We propose an alternative sampling plan, where stratification is based on clustering. info@mbarros.com 13 info@mbarros.com 14 Sampling Scheme used in the Available Data for each town or survey city These clusters are created from the notion Total consumption of an “electrical distance” which Average household consumption compares consumption in each town with Total number of households whose average values for each utility company. average monthly consumption falls into each of the 10 categories: 0-30 KWh, 31-50 These clusters will serve as strata in a KWh, 51-100 KWh, 101-150 KWh, 151-200 stratified sampling procedure, in order to KWh, 201-300 KWh, 301-400 KWh, 401-500 reduce “within stratum” variance. KWh, 501-1000 KWh, above 1000 KWh. info@mbarros.com 15 info@mbarros.com 16
  • 5. We construct some additional Cluster Analysis variables, namely : Standardized Consumption = total town Based on percentages of households in consumption standardized so that the whole each of the 10 categories. sample of towns in each state is a variable with mean zero and variance one. We start the procedure by forming n Electrical Distance = Euclidean distance clusters, where n is roughly 10 % of the computed from the percentages of households number of towns in the state. in each category for a give town ( in Algorithm used: Euclidean distances, comparison with percentages for the entire single linkage clustering. state). Percentages of households in each of the 10 consumption categories. info@mbarros.com 17 info@mbarros.com 18 Case Study: COELCE Case Study: COELCE COELCE is the energy distributor in the We start by forming 18 clusters, but State of Ceará, in the Northeastern part of several of those contained less than 3 Brazil. towns or villages. This clustering procedure is applied to all Thus, a sampling procedure based on towns in the State, except for the capital each of these clusters would not be cost- city (Fortaleza), which was subject to a efficient, which lead us to reduce the separate survey. number of clusters used. Most towns and villages in the state are This reduction is done until each cluster characterized by very small average formed contains a “reasonable” number of electricity consumption. towns. info@mbarros.com 19 info@mbarros.com 20
  • 6. Case Study : COELCE Case Study : COELCE 10 Clusters based on percentages of In COELCE’s case we used 10 clusters, households in each category but 6 of those consisted on 3 or less Cluster num_obs average average towns, and were later condensed in 2 new 1 50 consumption 55.1 std. dev. distance std. dev. 4.2 0.22 0.03 clusters. 2 3 22 1 51 45.9 3.9 ****** 0.27 0.31 0.03 ****** 4 3 60.7 1.5 0.2 0.01 5 4 67 7 0.17 0.04 6 63 68.1 5.6 0.14 0.03 Moreover, the total number of households 7 23 87.4 6.9 0.07 0.02 8 2 72 0.21 0.14 0 in these small clusters is negligible, and 9 3 43.2 2.5 0.35 0.01 10 3 38.8 3.3 0.41 0.03 their combination doesn’t lead to ENTIRE num_obs average std. dev. average std. dev. significant losses in precision. SAMPLE consumption distance 174 63.6 13 0.18 0.08 info@mbarros.com 21 Case Study: Rio de Janeiro 5 geographical zones We conducted a preliminary study in the South (19 neighborhoods) - most affluent, city of Rio de Janeiro. but includes some shanty towns with The basic aim was to identify similar totally different consumption patterns. electricity consumption patterns among 154 neighborhoods that comprise the city. North (26 neighborhoods) - some areas Originally, the city was divided into five are upper medium class, but generally zones using a geographical criterion. lower consumption than on the south Significant differences among each of the zone. five zones are observed. info@mbarros.com 23 info@mbarros.com 24
  • 7. Descriptive Statistics - whole 5 geographical zones sample West (26 neighborhoods) - mixed, some new residential areas but others with rural average std.dev. m um inim m um axim characteristics. consumption 192.1 54.8 97 492 p0-50 13.9 5.6 5.0 33.9 Suburban (71 neighborhoods) - low p51-100 17.6 5.3 3.4 32.0 income areas, low energy consumption. p101-150 19.2 3.9 6.9 26.7 p151-300 34.5 6.9 13.4 48.8 Center (15 neighborhoods) - around p301-500 10.6 5.3 1.9 29.2 downtown, some low income p >501 4.2 6.3 0 52.6 neighborhoods. info@mbarros.com 25 Case Study : Rio de Janeiro Average Consumption by zone ZONA: centro We consider only 6 categories of energy 300 consumo médio 250 Center consumption, namely: 200 150 0-30 KWh 100 CAJU COSME VELH CENTRO ESTACIO FLAMENGO CATETE CIDADE NOV GAMBOA GLORIA LARANJEIRA MANGUEIRA SANTA TERE SANTO CRIS SAUDE CATUMBI 31-50 KWh BAIRRO 51-100 KWh ZONA: norte 101-150 KWh 400 consumo médio 350 151-300 KWh 300 250 North 200 301-500 KWh 150 100 ALTO B VIS BANCARIOS CACUIA COCOTA FREGUESIA JD CARIOCA JD GUANABA MARACANA PAQUETA PORTUGUESA RIBEIRA S CRISTOVA TAUA TIJUCA VILA ISABE ENGENHO NO GALEAO MONERO ANDARAI C UNIVERSI PCA BANDEI RIO COMPRI ZUMBI GRAJAU PITANGUEIR PR BANDEIR above 501 KWh BAIRRO info@mbarros.com 27
  • 8. Average Consumption by zone Average Consumption by zone ZONA: oeste 280 ZONA: sul consumo médio 260 240 West 600 consumo médio 220 550 200 180 500 450 South 160 400 140 350 120 300 250 SANTISSIMO ANIL CAMPINHO B.GUARATIB COSMOS GARD AZUL CURICICA FREGUESIA GUARATIBA INHOAIBA P.GUARATIB PACIENCIA PCA SECA PECHINCHA S VASCONCE SEPETIBA TANQUE TAQUARA CAMORIM CAMPO GRAN CIDADE DEU JACAREPAGU SANTA CRUZ 200 150 100 BAIRRO 50 0 BARRA TIJU JD BOTANIC LEBLON SAO CONRAD RC BANDEIR VARG.GRAND BOTAFOGO COPACABANA GAVEA HUMAITA IPANEMA ITANHANGA JOA LAGOA LEME ROCINHA URCA VARG.PEQUE VIDIGAL ZONA: suburbana 240 consumo médio 220 200 180 160 Suburban 140 120 BAIRRO 100 BARROS FIL VIC.CARVAL VILA PENHA ABOLICAO AGUA SANTA B RIBEIRO BONSUCESSO COLEGIO DEODORO ENG DENTRO ENG RAINHA H GURGEL INHAUMA JACARE JD AMERICA MAG BASTOS MANGUINHOS MARIOPOLIS OLARIA PAVUNA PENHA PILARES Q BOCAIUVA RAMOS LINS VASCO RIACHUELO ROCHA SAMPAIO VILA KOSMO CACHAMBI CAVALCANTI VL VALQUEI COSTA BARR TODOS SANT PADRE MIGU TURIACU BAIRRO Cluster Analysis of Cluster Analysis of neighborhoods neighborhoods We base the cluster procedure on the a ve ra g e a v e ra g e C lu s te r # o bs . a v e ra g e s td . d e v. % a b o ve % b e lo w percentages of households in each of the c o n s u m p tio n 3 0 1 KW h 1 5 1 KW h 11 1 9 7 .0 **** 2 .4 8 4 .3 6 energy consumption categories. 2 8 1 1 8 .8 6 .5 4 .0 7 5 .1 4 28 1 4 9 .3 1 1 .1 7 .3 6 4 .0 We created 12 clusters, of which 6 contain 9 5 2 1 1 7 5 .0 1 8 6 .0 1 9 .8 **** 1 5 .4 1 6 .1 6 0 .3 6 6 .9 only one neighborhood. 1 99 1 9 2 .7 2 4 .8 1 4 .1 4 7 .5 10 1 2 4 6 .0 **** 2 7 .1 4 6 .6 2 other clusters contain 2 neighborhoods 8 3 2 9 2 6 5 .0 2 9 7 .0 1 5 .6 1 9 .1 2 9 .2 3 6 .9 2 5 .1 3 1 .8 each. 7 12 1 1 3 9 1 .0 4 0 8 .0 **** **** 5 5 .6 5 6 .1 1 6 .8 2 4 .7 6 1 4 9 2 .0 **** 6 4 .9 1 9 .8 W h o le S a m p le 154 1 9 2 .1 5 4 .8 1 4 .8 5 0 .7 info@mbarros.com 31
  • 9. Conclusions Conclusions In both cases, the clustering procedure Moreover, some of the neighborhoods results in groups that are much more singled out by the cluster procedure are homogeneous than the entire sample. clear “outliers”, that is, do not represent the entire population being sampled. In the Rio de Janeiro case study, even in cluster 1, which contains roughly 2/3 of In the Rio de Janeiro case study, clusters the sample, there is a considerable 6, 7 and 12 represent very high income reduction of variance, when compared areas of the city, as reflected by their with the whole sample of neighborhoods. energy consumption levels. info@mbarros.com 33 info@mbarros.com 34 Conclusions Also, cluster 11 indicates the neighborhood with lowest average consumption among all 154 sampled. Surprising as it might be, clusters 6 (highest average consumption) and 11 (lowest average consumption) are geographically contiguous. info@mbarros.com 35