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Cemig Unit Aims to Grow in Distributed Solar Energy Generation Through Acquisitions
Cemig SIM, the Minas Gerais state-owned company’s unit focused on distributed solar energy generation, aims to nearly double its generation capacity this year while expanding its customer base, the company’s president told Reuters.
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Growth in the Brazilian Solar Energy Market
The growth of solar energy will come from acquiring stakes in pre-operational projects of the technology known as GD, which involves small power plants whose generation is aimed at offsetting consumers’ electricity bills.
This mode of electricity production with solar energy has been growing rapidly in Brazil since 2015, supported by regulatory incentives that make systems, particularly solar, an attractive investment option for companies and consumers.
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“Cemig SIM will invest about 100 million reais in solar energy in 2020,” said the subsidiary’s CEO, Danilo Gusmão Araújo, to Reuters.
“Our expectation is that in five years we will invest 600 million reais in energy efficiency solutions and also in solar energy. In ten years, it would be more than double, to 1.4 billion reais.”
About Investments in Solar Energy
Cemig’s investments focus on installations in Minas Gerais, which, in addition to being the headquarters of Cemig, is considered the most competitive state for photovoltaic distributed generation businesses due to tax issues and good solar irradiation.
The transactions have been made with the company’s own resources, invested by Cemig, but the unit aims to obtain long-term financing linked to its assets.
“We are currently concluding an operation with Banco do Nordeste,” Araújo said, without providing details. He also revealed discussions with the Bank of Development of Minas Gerais (BDMG) regarding possible loans.
Cemig SIM has Negotiated the Production of Its Plants
Cemig SIM has been negotiating the production of its plants primarily with commercial sector clients, in a digital sales process for plans to purchase the right to the generated energy for a specific period.
Consumers can expect an average cost reduction of 20% in energy expenses by joining these plans to utilize the solar plants’ production, according to Araújo, who mentioned that the company will soon launch products focused on residential consumers.
“In the coming months, we will be launching a product for residential customers in Minas Gerais; our expectation is that we will have this launched within the next 60 days,” he stated.
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