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DMAE in Porto Alegre Reduced Costs by Over R$ 8.8 Million by Adopting Renewable Energy, Reinforcing Sustainability and Efficiency in Water Supply and Promoting Significant Savings for Public Finances.
The Municipal Department of Water and Sewage (DMAE) of Porto Alegre announced this Thursday (25) a savings of R$ 8.8 million with the adoption of a new clean and renewable energy contract, signed after a bidding process held in January of this year. The initiative marks a milestone in public management in the capital of Rio Grande do Sul, combining financial efficiency and environmental sustainability.
Immediate Savings at DMAE with Renewable Energy
In the first two months of the contract, DMAE has already recorded a savings of R$ 8.8 million compared to the conventional energy supply model. In July, R$ 1.6 million was saved, and in August, R$ 2.1 million. The expectation is that by the end of 2025, the total savings will reach R$ 20 million.
Ana Pellini, municipal secretary of Finance, stated that they are conducting a more effective public management committed to the conscious use of resources. In addition to the savings, the contract stipulates the exclusive use of clean and renewable sources, which could lead to the reduction of up to 20,000 tons of CO₂. To offset this volume, it would be necessary to plant approximately 140,000 trees.
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Clean Energy Contract: Public Management Strategy
The new clean energy contract was made possible through an electronic auction held in January 2025. This measure allowed DMAE to switch to the free energy market, where it is possible to negotiate directly with suppliers, obtaining better pricing and sustainability conditions.
Pellini emphasizes that this integration between cost reduction and sustainable practices confirms Porto Alegre’s commitment to being a financially balanced and environmentally conscious city.
The initiative is part of a broader plan by the City Hall of Porto Alegre, which since 2024 has been migrating all municipal medium-voltage units to the free market. Among the buildings included are the Emergency Hospital, the President Vargas Maternal and Child Hospital, the Municipal Hall, and the Administrative Center.
Renewable Energy and Positive Environmental Impact
The adoption of renewable energy by DMAE not only reduces costs but also positions Porto Alegre as a reference in sustainable public management. The contract specifies the provision of energy from sources such as solar, wind, and small hydropower plants, all certified by regulatory bodies.
Alex Zanoteli, Director of Flood Protection and Urban Drainage at DMAE, stated that they are cutting expenses, optimizing resource allocation, and strengthening the sustainability of their activities.
Furthermore, the monitoring of contracts and results is carried out by the spending control sector of the Municipal Finance Secretariat, ensuring transparency and efficiency in the use of public resources.
Porto Alegre Invests in Clean Energy to Reduce Costs
The City Hall of Porto Alegre has been strongly investing in smart energy management, focusing on reducing carbon footprint and optimizing public spending.
The provision of electricity is one of the largest expenses for DMAE, and migrating to the free market allows resources to be allocated to other priority areas, such as replacing outdated equipment and upgrading the industrial park.
The technical planning and documentation of the contract were developed by the Spending Quality sector, which conducts studies to mitigate electricity costs and ensure the viability of operations.
DMAE in Porto Alegre as a National Reference in Clean Energy
The experience of DMAE with the new clean energy contract can serve as a model for other Brazilian cities. The combination of significant savings and reduction of environmental impact demonstrates that it is possible to modernize public management without compromising essential services.
Porto Alegre, by investing in renewable sources, reinforces its role as an innovative city committed to the future. The initiative also enhances the institutional image of DMAE, which is now recognized not only for the quality of its water and sewage services but also for its environmental responsibility.
The Future of Sustainable Public Management
DMAE’s decision in Porto Alegre to establish a clean and renewable energy contract represents a significant advancement in Brazilian public administration. With projected savings of over R$ 20 million and a significant reduction in greenhouse gas emissions, the initiative proves that it is possible to align fiscal responsibility with environmental commitment.
Porto Alegre sets an example of how public management can be innovative, efficient, and sustainable.
By investing in renewable energy, the municipality not only reduces costs but also contributes to a cleaner and more balanced future. DMAE’s experience serves as a model for other cities seeking intelligent solutions for the challenges of urbanization and the climate crisis.
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