 Boataz de todos todos, this is Paul Guiado from U.S. Embassy, Brasilia, Brazil. I have the pleasure today to begin our web chat with Angelina Galateva of the California Independent Systems Operator Board, as well as Renewables 100. This web chat is hopefully the first of a series of web chats with renewable energy experts from the United States who have been participating in a climate partners campaign with State Department through the Mission Brazil and only U.S. Embassy, Brasilia, but also our consulates to bring U.S. renewable energy energy efficiency expertise policy backgrounds lessons learned to Brazil so that Brazil can also develop its renewable energy sector and hopefully to the benefit of the greater climate induction of carbon emissions. Again, by means of introduction, Angelina was a guest of ours here in Mission Brazil. In November 2015, she visited both U.S. Embassy, Brasilia, as well as Consulate General Hicefe, and had a series of substantive meetings, largely discussing her role in a series of reforms in California, which have led to a very rapid introduction and explosion, rather of solar photovoltaic wind and other distributed energy sources within the state of California. In her role as part of the California Independent Systems Operator Board, Galateva has been a leader in promoting renewable energy, as well as reduction of carbon emissions through the state that's truly a global leader in that area. So without further introductions, I'd like to turn over the platform to Angelina. Thank you so much, Paul. This is great, and I enjoyed coming to Brasilia as well as Recife. It was a lot of fun. We had opportunities to learn from each other and realize what mutual collaboration can lead to and why it is so important to have a platform where all of us are working together towards renewables. This is not a one-time event. We actually had the fortune of following up with a meeting with Sergio Xavier from Pernambuco, the environmental secretary in Paris, where we outlined some initiatives of working together. Pernambuco also signed the Under 2 MOU, which is a subnational initiative that California launched. And Pernambuco has become a member of it. I will talk about that a little bit later in the presentation. And we're going to be moving forward, hopefully with projects that can showcase the abilities of U.S. companies to deliver renewables as a solution to Brazil as well. And this is very much a collaborative effort that was followed up by a visit from a delegation here in California, where we had the fortune of talking to some U.S. companies such as City Solar, Tesla, and others in terms of Stanford and universities, UCLA, water companies and water agencies having an interest in implementing renewables, energy efficiency, and water programs for Brazil on a collaborative level. Very well. The explosion of these renewables not only happened here in California, on a local level, in other areas, but also on a global scale. The total investments in renewables, in technology for 2015, have been superbant and exceeded the energy investments of fossil fuels. 1.5 trillion dollars entered in large-scale projects and solar energy and 2.2 trillion in distributed energy, which is also a very large part of what we are putting in the mesh so that consumers have access to renewable energy and have the power to make decisions. We want consumers to have control over the energy options that they use. Renewable energy also represents 65% of the new generation capacity in the U.S. in 2015. Renewables are surpassing the investments of fossil fuels not only internationally, but what we see here in the U.S. The presentation will talk about global, international, and in California, how we are implementing and where we believe that there is potential for the future. The future of the coal doesn't seem very brilliant. The main four coal companies in the U.S. have declined 99% since 2011, and some of the other big projects, in terms of what has happened to the coal companies, the Pibare already entered with the Concordata request, which was a surprise, but in the context of these other companies, they are disappearing over time. This shows that this is a situation where the investments are a disinvestment by value destruction. From 2013 to 2015, we see here the clean energy index in green. Not only the prices are decreasing, but we see what the countries are reaching today. Although it doesn't seem very impressive, the goals for the 2040 already represent a substantial market. So, we have the potential for investment based on the regulatory end, which needs to be transparent, long-term, consistent, which allows long-term to see in what direction the market is heading, the decline in the price of energy in terms of renewables. 80% for solar energy in the last three years. This all serves as an impulse for these energies. Let's go back to California now. It is necessary to see that the entire regulatory system, the SB350, which is the clean energy law and the reduction of pollution in 2015, was the regulatory restructuring that prepared the whole system in the state. We have the normal of the renewable portfolio from 33% to 50% until 2030, as a goal. And here we have our net and we are operating in 33% now. We are going to double the energy efficiency, we are going to focus on electric transport, and more importantly, we are going to start considering a whole net of energy. California is on the west coast. It is one of nine electric networks operators. We have there, mainly in the middle, then on the west coast, then there is all the empty space until we get to California. To get the benefits of renewables, we have to have regional integration. I was at the Bloomberg Renovable Energy Forum in April and the Secretary of State, John Kerry, made a presentation basically showing what is happening, why this vacuum was in the middle, and how we should be acting on it. And we are acting. We want to integrate this market very soon, led by California. Here we have the ESO, according to the numbers, it is the largest in the world. We have cooperation also with Europe. We have 80% of the state, well balanced, and we are already dealing a little with the neighboring states. Our role is, first of all, to maintain the reliability of the network. We can have 80%, 90% of the renewable energy, but if we have blackouts, failures are useless. So we also need to implement state policies of goals that will be 50% to 2030, which does not include large hydroelectric projects or specific solar energies. So in fact, this 50% represents more 60% or 70% in fact. And we have a general goal that we have already achieved. Critical balance between implementation of renewable energy resources to ensure that the cost is not prohibitive and maintain this pressure for reducing costs and all incentives are helping us and maintain reliability, which is the main objective. This is the emblem of the situation. We always see high penetration rates of renewables, but it is necessary to have this graph in mind. Basically, we see the entry of solar energy, the suppression of prices, and in the end, in the last analysis, we see about 10,000 megawatts, we expect 13,000 until 2020. A great opportunity to have renewable energy, but for it to be efficient, we need to deal with this graph. We need to collect this graph's belly so that the line is as stable as possible. What we saw is that the energy drop in the middle of the day, which is 22 megawatts, and we think a lot about the transport sector in this situation, we want to force the electrification of the transport system, making the battery card at night and limiting the access to energy in the peak hours of energy access. What we see now is that the peak is no longer two hours, but six to eight hours. So we need to make adjustments to some challenges, but also opportunities, and with these peak areas, we need to adjust our operation. What would be a great area of success to include resources and in a quick way? It is necessary to realize that we can include many megawatts. Quickly, in 2010, we started with 85 megawatts, which was a large-scale transmission online in California, which is not very impressive, in any way. It is not a number that impresses us. And we had 3,000 megawatts of energy oil. There was more success with oil at the beginning in California, because the resources were cheaper, and the portfolio standards were more limited. In 2015, due to the goals and transparency, we reached 6,000 megawatts online, which means the equivalent of three nuclear weapons. And now we already had 6 megawatts of energy oil. It is not a great resource in California, but we want diversity. So we continue investing. In 2030, there will be a debate. How will the renewable energy level be? All studies indicate that it will be around 70 to 80% of variable resources, which means oil or solar. We will be able to balance these resources, but we need to define how to make sure that we can continue to invest in these lower cost resources, increasingly lower, in a cost-effective way. Because the smaller the cost, sometimes 20 to 30% of penetration, there is no problem. We see integration, we see mainly energy and oil, in solar installations. In California, we have almost 80% of solar installations, but when we go beyond 50%, the story changes, and we need to change our diversification strategies. We need to have a lot of flexibility and diversity and a very solid network to give the foundation to this penetration. And we also need to deal with the distribution sector. Traditionally, distribution transmission was very close. Now we see that red area, that red top there in the graph, is the excess generation in the middle of the day. And we don't want to interrupt the production and generate waste, because there is no way to store this energy. So storage becomes essential. And the know-how to not waste, but to incorporate it into the network, becomes crucial too. What is interesting is that as we see these programs of efficiency in 2005, 2014, we have in the yellow line a stable demand line. But the need for transmission in 2010 and 2030 shows an exponential investment that needs to occur. And this is something that needs to be in our minds to achieve a higher level of renewable energy dependence. Regional integration becomes more relevant. The greater the geographical presence, the more important distribution will be. All of this will be more relevant, so that we can make predictions. Previsions will also be crucial to be able to place resources throughout the network. And the predictions are reaching an extreme level. ESO now has two full-time working hours of predictions. And they say that they are better specialists than the best meteorologist. They know exactly where the winds will be, the solar rays emission. This prediction is important and we want reliability because we can monitor the winds and the sun. It is more and more clear that regional cooperation is crucial. We did not want the regulatory scheme that decided, but that decided why not have our computer network available to the neighbors in the west, so that they can participate in the market for five minutes, where there is a lack of energy balance. We optimized their system and then we were able to optimize what we are using, the pump, to make the network of the west be a network of cooperation in any way. It is not necessary to leave your autonomy with this type of system. The important thing is to take advantage of the maximum existing system. And why is this necessary? That raccoon that we saw in the middle is an area where there are 38 authorities who work in this balance, which is not efficient. Everyone has to have a reserve, everyone has to be sure that in case of an emergency, they can operate independently. This is inefficient for the entire west region and it is difficult to incorporate a renewable system if there are authorities who make this balance 38 in the whole region. It is difficult to balance load and generation. When we make a balance between load and generation in a set, instead of being separated through a centralized system with an energy imbalance market, the flexibility increases, decreases the need to have reserves. And this is important because it is economically efficient and reduces the cost of integration. Everyone benefits from working in this market. It is a decision of economic character. What we are doing in terms of techniques is combining all the authorities who work in this regulation of the balance. Here you see the different beauty, sound, Arizona have already entered this energy balance market. And in November 2014, it was when we started, it has been more than a year, and the success has been strong. We have an automatic space to solve this balance, avoid congestion, allow it not to be necessary to charge for voluntary leave. Here we have entities who participate or who are interested in participating in this market to benefit from this optimized system. For this to have success, it is necessary to create the transmission system. This is what has already been incorporated to ensure that it is possible that energy goes to the west or to the west. California has always been an energy importer. And now, California is also exporting energy to something that had been done before. The success story happened in April, with Berkshire Hathaway, who entered the Pacific Corp. They are also owners of Mid-America, a company in the middle of the country that works in this middle territory that is not integrated and they operate in Iowa. And it was interesting to see that Berkshire Hathaway is no longer a company aware of environmental terms, but now, with 100% of renewable energy in Iowa announced on April 13, its last project that makes 85% of its energy. In Iowa, it will be oil, this would not have happened without an integrated market. Pacific Corp is one of the first companies that arrived at our market in California because Berkshire Hathaway had the capacity to know that in Iowa they managed to integrate renewable energy in a cost efficient way, a renewable system keeping the lowest prices in the United States, the seventh lowest in the United States, in fact. And they will work in the same way in California and at the end of 2015 they will show the largest solar project on Earth, Solar Star 700 megawatts, close to Lancaster. And our delegation from Pernambuco visited this place, the first international visitors who came to this place and they told us that Bill Gates and Warren Buffett were also visiting the place. It was a project made with a lot, in the middle of a lot of silence, the program of Iowa was very widespread, but this is not, but they are seeing that this change for renewables is really an economic character movement, the benefits of the EIM are economic. We see here the initial cost, let's see Pacific Corp, 20 million or to start, this was paid in the first year when they won from 21 to 129 million depending on the integration and costs annual three million dollars, and this year after year. So the argument is not what happens if we enter this market and yes, why not enter to benefit the customers in the West? A great success in November 2014, and our market already reached 47 million dollars, and this first trimester is also very good. It is expensive to invest in transmission, no doubt, even if no one else entered, just to be in color, in a 20-year period we would have a combined benefit, without changes in the system, only in the efficiencies achieved by three million dollars, this is paid by the transmission and it is a voluntary system, maximizing operational efficiency, which is very good, it would not be the regulation, no one has to come and tell you what to do, we work in this market while it is efficient and beneficial. What we did not anticipate was the issue of governance, because it was necessary to change things, all our neighbors like California, but our network in the west is not called network of west, it is called network of Arizona, but we want to change to network of west, network of west with representation in the administrative council and the governance of the whole network, so at this moment we are doing a study to see how everyone is represented, it is a very stimulating process, there are many arguments in terms of how to do it, but until the end of this semester it has to be concluded to be able to move forward, so we are working quickly to create this system of governance and ICO, this will be difficult, it will be complicated, but we will do what works, so we are doing impact studies in the region with very positive results and we want to have a good governance structure that is acceptable for everyone, what we see here in terms of regional transmission organization and that big cone in the middle of the map with nine operators, what made the regulatory commission that had not been able to implement the market, because it had to be voluntary, the west had said no, we are independent, we do not want a central operator, then the networks were created in different regions, Texas is alone and it is important that now these regions start cooperating in Europe, this was what the European friends showed with the unique European market, also the voluntary market with seven networks of different states, the important thing is again the transmission, the integration in Europe was crucial for all of its countries so that they could then make connection with the retroelectric resources of Norway, for example, because it has much more hydroelectric energy than the rest, it is a role that Brazil could also have in the future, we saw May 5, 2015, unique price in the whole market, which was its goal and we see how Norway's hydroelectric balance is able to make the wind, for example, of the dinamarca, the dinamarca energy is well integrated, the solar system had impressive results, in California we had a dry period from 2012 to 2015, then the hydroelectric resources decreased in 2012, 12,000 megawatts disappeared in a nuclear plant that was having a leak and it had to be closed and what these next slide show is that the solar energy installation 5,000 megawatts compensated for the loss of hydroelectric energy and nuclear energy, its reserves and we see the waste that we would have had without this solar energy that was here saved our region here, we are seeing new projects asking for interconnection in Chile, the same scenario that we saw in California, renewable based on solar energy and this is the lowest cost, so we started here, in the next slide we see that the growth should be the new energy policies that stimulate clean energy with great resources, the average production price of 69 dollars per megawatts per hour, which is within the band that is most of the cost of resources as a result of new installations, the operational cost in the beginning is low and there are no emissions, so there is abundant energy or there is great competition between renewables and we see here that many sub-national initiatives are being implemented to reach 100 percent, we have a memorandum of understanding, an initiative from California for an initiative that was very prominent in the Paris meeting this year, in the COP, with goals for renewables and reduction of the stufas gases, the initiative from California due to the sixth energy in the world and it was a moral imperative to advance in this sense with the role of leadership along with other countries trying to make the growth of the maximum force of two degrees and two less than two tons of carbon emissions and if we see the emissions from California and from Brazil, Brazil has a lower goal, we wanted to be sure that our partners were also able to reach our goals, UNESCO has as a 100 percent goal of renewables and all UNESCO's sites are committed to this reduction and this transformation in renewable G7 also appealed to a 100 percent of renewables decarbonizing our economies and what the future is clearly decarbonizing and decentralizing with enormous paper for the future. We will see a much more concentrated system in the consumer that incorporates panels on the roof, electric vehicles, control of the consumer, electric rates and signals that are more integrated, each home will have the capacity to participate in the market. It is a slightly complicated slide, this next one, but it aims to show the transformation of the system and it comes from ISEO to show how the market will incorporate consumers, so we go to that meter, to that electric clock and we control what happens in the transmission area and optimize the system geographically as well. We need to increase the energy efficiency, we need to improve the response of the team to improve the demand response to have more flexibility and storage will change the rules of the game, we need large scale storage, we will have services for ISEO, for the consumers, for consumers with a very fast energy delivery and the hydroelectric projects will be able to do the loading, unloading and numerous programs that will promote these possibilities. Electric vehicles will also take the network stabilization and we are evolving very quickly, just like human beings evolved, energy systems are evolving, remain the same for hundreds of years, but since the 90s, we are observing a slowdown in a very accelerated way, which may happen, we will depend on the networks, but also on micro networks, a decentralized system to ensure that we will be able to access all possible resources as efficiently as possible to optimize the whole network based on renewable and decarbonized energy. I like to show this slide because to provide energy to the whole world with solar energy we only need 0.07% of the area, the surface of the world, so the important thing is transmission, storage, capture and make the system work, and if we can capture 2 minutes of solar radiation per day, we will be able to supply energy to everyone including those people, millions of people who do not have electricity at the moment. This is the group of G7, I do not know why there are 9 people in the photo, because in fact it is the G7, and they are calling for action, and in Argentina, the Pope Francis, very popular, is making a call for renewable energy, so we do not have a plan B, we need to decarbonize as quickly as possible, as efficiently as possible, sharing with the enrichment, experiences, because we can all benefit from this exchange, and we will do with what works in this new system. Thank you very much and I am available for your questions. Our first question is from Luiz Norrecif. Luiz asks about the high levels of renewable energy penetration and the impact on the intermittency, especially in relation to the wind and solar. The question is how California is dealing with the intermittency by the operator. In fact, it is a learning curve. In the beginning, the operators said very well, 10% of renewable energy can be incorporated on the network, they did very well, reaching 20%, they also managed 30% or more and de-stabilize a lot, so we had to learn a lot and we needed the solution of TI. It is a matter of TI, it is a matter of well-made previews and being able to incorporate more flexible resources to operate the network efficiently. Another fire baptism was that we lost a very large and very stable resource in terms of a energy usage in a very short period. So we had to quickly strengthen the transmission system and generation and renewable energies that saved us and learned to deal with the system and how we can preview renewable energies, we can generate them in a much more efficient way. We are planning not only in 5 or 10 years, but in periods of 10, 20, 30 years. This long-term vision will be very important, just like diversity and flexibility. So we know where we are going, we have predictable goals, now we know that we are going to try to reach 50%, it is a goal, it is not a goal, and we are going to overcome this level too, we will be able to interrupt the incorporation of panels on the shelves because the installation of 8,000 residential systems or shelves per month and we need to be able to deal with this network. We are in partnership with the area of TI, storage, we are going to increase efficiency, all of this is a tip network and it is very interesting to see what is happening, and the network operators are wondering how they are doing so well in the incorporation of renewable energies and this makes me very happy. Very well, we have another question that has to do with the previous question, it is a question from Carlo and he asks about the connectivity of solar and wind energy systems and how the project developers are making the coordination so that there is adequate transmission before the construction of these energy plants. This is very important, not only in California, but it is a question that in any large-scale project will be built or incorporated. I visited one of the most beautiful energy projects in Recife, which I have already seen, the interconnected transmission lines, so they are the network coordinators that need to coordinate with the developers, identify areas with capacity on the network and areas where there is need so that they can know if the development is done in this area, it is here that they can do the interconnection quickly and give a quick return. All are wrong in this path of learning, everyone wants to obtain interconnection studies, we carry out the studies and we need to strengthen the system. What we did was to think that in the first place 80 or 90 percent of the projects would not happen with a lower rate of incorporation of projects, so I need to hear a very tight cooperation between the coordinators and developers to identify the areas in which we can incorporate more renewable energy more quickly. This is important to obtain this synchronization between the development of the project and interconnection. And finally what we saw in some of our Europeans are geological projects that were developed without the transmission to interconnect, so they need generators so that they work and not remain inactive. This is something that we want to avoid, we want the development transmission to work hand in hand and that the system is as predictable as possible. We have one more question from Allison Recife, she asks if the energy distributed could be a solution for energy distribution, especially with photovoltaic panels on the roof, could be a solution for Brazil to deal with energy demand in the future. This has to do with what California said, but when it talked about the installation of more than 5,000 of these systems per month, how California is dealing with the intermittency and the various issues related to energy distribution when there is so much, such an accelerated adoption of these systems. It is true that mobile owners want to install these systems, but we have an executive order that requires or that stimulates an energy balance in the construction of houses and the same new one will be applied in 2030 to difficult commercial constructions, so we will see the greatest incorporation of these renewable energies, just like now, we have already incorporated efficient windows or interconnectivity in the construction, this is something that, in my opinion, will be essential for the development worldwide, especially in sub-Saharan nations, places where there is no electricity, 1.2 billion people without access to electricity, if we want to offer energy to them, probably there will not be a centralized network at the beginning, but yes, a series of micro networks with panels, photovoltaics, biomass, geological energy, energy transport, showing that it is possible to achieve poor quality of life, which brings, then, all the benefits of education and development, more quickly than if the system was centralized. The price of Brazil is in a slightly singular situation, because more than 90% of the country is already energized, the prices are not extremely high, it is something that we saw in Argentina as well, so if we send the correct signals to the market, the correct subsidies, those distributed resources with certain incentives, people will have incentive to make high generation and use the resources more efficiently, so sending the right signals about the price has been a motor of solar energy generation, when I am paying 30 cents per kilowatt per hour, people have a stimulus, they will pay less, they are saving, the energy efficiency has been enormous, we had a limited growth in 2015, but at the same time we see that the prices promote this growth, availability, financing, all this important, and incorporate the need for a zero sum balance in energy at the construction time. This will be important not only in the United States and Europe, but all over the world. This is an interesting opinion, because one of the questions that the Brazilian public is interested in is what kind of incentive has been the most effective in California to promote solar energy, considering that this is the best resource in California. It is very interesting to identify if these are renewable energy portfolio standards at the state level, if these are fiscal incentives, what has been the biggest motor of the growth of renewable energy in the system in California? It is a combination of several factors, without a doubt the norm of renewable energy portfolio at the beginning, when these energies were more expensive, was very important. We paid a little more to develop these energies and incorporate these resources, despite being more generous, but the beauty of having a norm of these and the beauty of renewable technologies is that it is not a subsidy, it is an incentive, and the definition of incentive is that over time it is reduced and disappears, and they have already been reduced by more than 90% in the whole world and the price has already fallen by more than 80% too. Now renewable energies, because of these incentives, have become one of the most economic options. One of the big engines here was a large-scale project through the fiscal incentives, which, the fiscal credits, that lower the cost. So we made a purchase in California of 6 cents or below, despite seeing, in general, a price closer to Argentina, here there are fiscal credits. And the diversity is important, we need to guarantee that by receiving these incentives, which is not necessarily the lower cost, but the more adequate project, we need resources of the basic line, renewable resources and more storage, even if it is a more expensive storage, because if it is only used for two hours a day or two hours a day, it makes no sense to install a very expensive battery, because it will still be more expensive to operate in a basic line plant that does not operate 24 hours a day. So partnership with our neighbors, distribution systems, all this will be very important from now on, because the incentives and portfolios will not perform such a central role here in front. We will be the option of lower cost. And in the state of Iowa, for example, they are making the transmission, the transition for this type of energy, and we will see this also on the west coast. Very interesting, in Brazil, the ETER advantage is 70% of energy generated by hydroelectric energy, and obviously this is the basic energy. As for energy storage, Recife asks how, what does California do for energy storage? How is California incorporating this storage in its network? What does Brazil have as an advantage? It is the great hydroelectric energy that can be very flexible, that can balance the geological resources and solar energy. So 30, 40% of geological solar energy above hydroelectric energy, as a symbiotic relationship here in California, here we have, we like a lot of hydroelectric energy, and we have only 30 megawatts of hydroelectric projects in our renewable box. We have the problem of droughts, but when we have hydroelectric energy, it is a great value. We are also centered in the electricity generator to see that storage will be used for the renewables, it is necessary to incorporate them, and storage is probably, is delayed 15, 20 years in relation to energy production. It is expensive, we have to have a plan to encourage. California launched an initiative in which all electric companies have to buy 1,300 megawatts of storage. This does not include hydroelectric, because it is already available commercially, this includes new technologies, batteries and creative ways of storage energy. We have a company that proposes to have a train going up and down so that this train, when it goes down, can generate energy. It is really an innovative proposal. So when companies made these proposals, they buy 2, 3 times what the law requires, because with different customers, the expensive storage makes sense, because it compensates distribution costs and the distribution system. So we are investing, we are making sure that companies incorporate this more expensive storage on the network, trying to find the most effective cost, and we are now in a transition period of support for the renewable sector as new resources, trying to reduce the price, trying to achieve the same result in storage, with new avant-garde technologies, to be able to penetrate the market and reduce the cost in volume. Thinking about storage, we received another question, comparing Brazil with California, and the potential for growth on a large scale of renewables and growth outside the population centers. Two parts to the question. So California is thinking of growth on a large scale, for example, in the desert, in the south, in the east, away from the population centers, or as it happens in Brazil, and how does this increase the cost? How can financing for transmission on a large scale is here that integration is crucial, it is here that integration is important because storage is expensive on a large scale and it is easier to have more transmission and transport the excess energy from where there are great conditions in geological solar terms to places where it is necessary. So there is a development of projects on a large scale in the desert to bring to the centers inhabited on the coast and also transported to the neighbors when they are needed due to the difference in time. We can make sure that the resources are transported efficiently to the neighbors instead of having to reduce, definitely, the resources are not where the load is, so the transmission systems have to be efficient, we have to build them, this we see in Brazil, we see in California, we see in the west of the United States, in Europe, in Germany, the geological resources are in the north, but the load is in the south, so increasing the transmission is crucial and the initiative of Mália de Renováveis, which is a partnership between civil society and Mália operators to build this transmission has been crucial to ensure that there are ways for cost-effectiveness and to optimize the transmission in Europe, here we will have to do the same thing, it has to happen in the whole world and when developing, for example, eolico in Wyoming where the load is not large, but if there is an interconnection, California can be a market for Wyoming, Paranio, Mexico and at the same time Arizona can use the solar resources of California and optimize the whole system, Brazil is already integrated, which is a great benefit, it already has a transmission on a large scale, this can still be improved and used and when incorporating and integrating with the neighbors in the north or south, this, without a doubt, should be considered because of the incorporation with the neighbors that can benefit from the great hydroelectric resources of Brazil and Brazil can be Norway, from South America, which Norway does, Norway is 100% hydroelectric, equilibrating the renewable load in Europe, everyone wants to connect with Norway, so there are lessons to be learned from what we discovered and that it is not necessary to reinvent the wheel individually, we must cooperate, work together, because we have a lot to learn from Brazil and Brazil can learn a lot from us in Europe and cooperation will be crucial. The question in relation to the long-term transmission for energy, especially here in Brazil, is the question of investment, the way that California managed to attract investment, especially for large-scale projects, which brings us to the question of Luis, who is interested in investment in solar, thermal or solar concentrate, which is more of a risk for investment. So, two parts, first, how California managed to attract investment, especially in large-scale projects in the area of solar, and second, we talked about storage in batteries, we could talk about two solar technologies, thermal and solar concentrate, and how California is working on that. Well, we managed to attract investment because when we have some elements of transparency, longevity and consistency, here we had in our renewable box, and we have the need that these resources can be integrated to meet the regulatory mandates, people know that investment is safe because the energy companies will buy the 20-year contract, so this, without a doubt, was stimulated by the PPAs and by the purchase options that are also happening in other parts of the world. The Europeans worked with a way to stabilize the rates, guaranteeing interconnection, implementation, there is not so much geographic area as here in California, the systems are smaller, more distributed, but the quantities are similar, so having a stable regulatory framework is important, it is crucial, in fact, the prices are low, there is an economic advantage, the stability makes the investor feel comfortable investing and feel that the investment is safe and long-term. So this is very important. Now, the resources, we saw a lot of energy, the photovoltaic, because it is cheaper and more stable, the thermal not so much, it is not a bad resource, it is not good, but it is more expensive and we have here a thermal location, the reception delegation visited, California is not ideal for the thermal, it is more expensive, Brazil, in some areas, is fine, but if it is in good health, it has influence on the system, it is the system of more sensitivity, the clouds do not work in all places, it needs a specific geographical location, so the thermal or concentrated is more expensive and there is not so much advantage as a photovoltaic, which is what we have the most in solar energy. One of the questions we receive about investment in Renovables in Brazil is how investors are working with regulators to determine where to invest in California. The question in Brazil is how to decide that the solar resource, the hydraulic resource, is the most attractive? The question is this, what is the role of the government in making sure that the resources are identified adequately and that the investment can be directed to the market, in California there is a different focus, the government did not get involved in this identification, in the beginning no, we saw this here in Europe, but when the penetration is greater and we do not want a development that is not regular, we want to identify areas that we want to protect and be sure that we are developing in a way to have a smaller impact in terms of resources, national monuments, access to transmission, coordination between governments and network operators has made it even more important and makes sense when there is a development on a large scale and we want to be sure that the project is profitable, we want to develop it where there is actually interconnection and that interconnection does not cost so much or where there is a pre-visible cost for interconnection to know what the cost to anticipate the Renovables has the advantage that the cost is anticipated in the technological investment anticipated because the fuel is free, maintenance is low so with this anticipated investment it is better to be in a place that is the best place for this resource, maybe when we talk about solar installations it is good to have a good project where there is good transmission, if someone has a small installation, if someone has a house, why not develop there too in these places instead of doing it on a large scale, so we see distribution in the places where the client makes sense that can integrate directly with what they produce in their energy counters, in the rural production part, this is also seen, sometimes there are projects of 700 megawatts with adequate transmission lines where it is possible to build a substation with space that has already been anticipated at the construction time, Brazil identified areas where it is worth developing certain resources, whether they are windmills or solar panels and then develop in a way that is easy for all, including investors, to have a visibility, the mixture of technologies is also interesting, it is important to show how this mixture works and I will applaud Fernando Noronha, we will show these slides, an island that is close to the Recife and that is with the free carbon system showing the use of micro networks, advanced transport, 100% renewable generation, it is a place protected by UNESCO and UNESCO is giving support to this initiative of 100% renewable for all its places of world heritage, it is a laboratory where we can show how the technologies of California, the United States can work together with the environment of Brazil, with a focalistic in an island, Fernando de Noronha, no doubt, is a jewel in Brazil and in the world, so you must visit David Mooney from the laboratory of renewable energy was, so we all would like to visit her, Angelina, we will conclude here, thank you very much for your support, not only this conversation by the web, also the program of partners with Brazil through your visit, your cooperation and without a doubt we will keep in touch with you because the leadership of California is not only for a plateia of Brazil but for the world, it is possible to advance quickly in this integration, keeping low costs for the consumer in a short period of time and we hope to continue this dialogue and we are all together to visit our website, climateamerica.gov, so good afternoon from Brazil, thank you Angelina