Mining Deal, Made for Miners, Secures Energy Future in the State

The Mineira Distributed Generation Company (EMGD) begins energy compensation services in August in the state of Minas Gerais. Aiming to generate and expand the use of clean and sustainable energy for more and more residents of Minas, offering a straightforward reduction in electricity bills, EMGD reaches its effective inauguration bringing differentiators that qualify it as a major exponent in the sector.

Founded in 2016, at a time of great advancement in the development of Distributed Generation (GD) in Brazil, EMGD spent the last four years in a maturation process, adapting on all fronts until the arrival of the current scenario: the completion of its first solar farm. Located in Pirapora, North region of Minas Gerais, the Corvina Photovoltaic Plant (UFV), as it has been named, is merely awaiting connection procedures with Cemig, expected to happen by the beginning of August, for the long-awaited initiation.

Led by the expertise of seven prominent names in the Minas business scene, the group of shareholders that makes up EMGD’s administrative council consists of members connected to various sectors, from steelmaking to construction. Among them are two economists with established roles in the financial market, José Francisco Dutra and André Sallum de Mendonça, who flank their management with heavyweights like Ricardo Valadares Gontijo, Ricardo Ribeiro Valadares Gontijo, and Rafael Passos Valadares, affiliated with the construction company Direcional Engenharia. Additionally, there’s the significant involvement of executives who made history at Grupo Gerdau, such as Daniel Antônio Miranda de Mesquita, former Industrial Director of the group, and Manoel Vitor de Mendonça Filho, former Vice President of Grupo Gerdau.

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This composition of experienced names in business leadership has brought, in addition to credibility, differentiators that have made EMGD a great ally of the Minas business community. Through it, companies with a minimum electricity consumption of R$ 1,500 on their bills, with businesses within the state of Minas Gerais and connected to Cemig’s network, will be able to benefit straightforwardly from discounts ranging from 10% (industrial class) to 18% (commercial class) on energy costs. “All of this with zero investment in equipment or maintenance cost, plus a contract with no loyalty period,” affirms José Francisco Dutra, financial director and member of the EMGD Board of Directors. There are also facilities in the digital signing process, allowing clients to contract their quota from wherever they are, in a 100% online and secure manner.

During the enrollment process, the EMGD team conducts a survey regarding the client’s average energy consumption over the past months, and based on this data, determines the necessary quota to meet their demand. The energy generated by this rented lot at the UFV Corvina goes directly to Cemig’s distribution network in Pirapora, generating credits for discounting on the client’s bill in any location in the state, as long as they meet the already stated requirements. “Let’s suppose that the owner of a butcher shop has an average energy bill of R$ 5,000. From the moment the EMGD plan is contracted, the energy generated in the solar quota rented by him will offset his consumption with Cemig, and the client will have to pay their monthly fee which, in the exemplified case, will cost R$ 4,100, meaning an annual savings of approximately R$ 11,000,” explains José Francisco.

Such conditions have intensified the demand for EMGD services.
According to José Francisco, more than half of the lots at UFV Corvina were rented even before its connection with Cemig. “It exceeded our expectations, but it is important to emphasize that we are offering quotas from a completed farm, which will provide the benefit of savings this year. After these are completed, interested parties can only save with us when we finish building a new photovoltaic plant,” he warns.

The UFV Corvina, responsible for generating this energy, has a total capacity of 6 megawatts-peak (MWp) and occupies an area of 11 hectares, equivalent to 15 football fields. With an initial investment of R$ 25 million, the plant has 15,000 photovoltaic panels capable of supplying around 925,000 kilowatt-hours per month, enough to meet the consumption of 600 business owners who rent the minimum required quota.

And the company’s commitment to the people of Minas is just beginning. The forecast for 2021 is to start its expansion with an ambitious investment plan that foresees the construction of new EMGD solar farms, all in Minas Gerais.  “We will increasingly honor our motto, as we are a Minas company, made by Minas people and for the Minas people,” concludes José Francisco. The project includes more than 30 plants, under investments of R$ 400 million over the next four years.