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Focus Energia and Cielo Announced Partnership in the Renewable Energy Market Through the Sale of Electricity Produced from Solar Plants and Small Hydroelectric Plants
In the renewable energy sector, Focus Energia announced a partnership with Cielo to open a new market for trading electricity sourced from solar energy and small hydroelectric plants of the company. According to the two companies, businesses under contract with Cielo in 82 municipalities in São Paulo will be able to join the Focus consortium, through which they can obtain energy at least 15% cheaper than the standard electricity.
Expansion of the Renewable Energy Market
The companies stated in a joint declaration that the pilot phase in the renewable energy market began on February 8 and included the cities of São Paulo, which are served by the distributor Energisa. In September, the project will be expanded to another 774 municipalities in Minas Gerais served by Cemig, including the metropolitan region of Belo Horizonte.
Alan Zelazo, president of Focus Energia, stated in a report that the two companies will seek to further expand this market with the model of using renewable energy. According to him, by reducing partnership costs, Focus and Cielo will work together to reach retail customers throughout the country.
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How to Access the Discount
To receive the discount, the establishment must register on the Focus digital platform and obtain the electricity bill using the CPF provided in the contract with Cielo. Focus, which operates in the energy commercialization sector and has renewable energy generation assets, stated that the 15% discount applies to low voltage consumer units.
These customers will receive credits related to renewable energy produced by Focus in small solar plants and hydroelectric plants that operate under a business model known as distributed generation. For devices connected to high voltage, Focus offers another option, which is to sell electricity in the so-called free energy market, where companies with higher demand can negotiate energy supply contracts directly with generators or traders.
Partnership Between Focus Energia and Cielo
The partnership between the two companies occurred shortly after Focus in February, during which the company raised around 765 million reais for investments in solar energy installations. Focus works in the development and implementation of photovoltaic solar energy, providing solutions that meet each client’s needs.
The company primarily operates in the solar energy sector, acting as an integrator of high quality and high-performance solutions and is committed to occupational safety standards and installations to recognize its direct and indirect customers and employees.
State of São Paulo Wants to Tax the Use of Renewable Energy
According to state decree SP 65,255 / 2020, which came into effect on February 15, 2021, the state of São Paulo will only exempt 78% of the energy produced, with energy consumption of up to 700 kWh and 75% for consumers exceeding this limit. Therefore, in the next two years, regardless of compensation, 22% to 25% of the total energy produced through renewable energies in the distributed generation system will be taxed in the state of São Paulo. Simply put, São Paulo will tax part of the energy used by consumers and even by the producers themselves.
The electricity distributors operating in the state of São Paulo consume approximately 145,000 kilowatt-hours of electricity each year and more than 18.6 million in electricity consumption.
More than half of the energy matrix of the state of São Paulo comes from renewable energy, with the installed capacity of the state being approximately 23 GW, equivalent to 15% of Brazil’s energy generation. Hydroelectric plants accounted for 65% of the total production in the state, thermal plants for 25%, and fossil thermal plants for 10%.
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