Investor's kit

A unique partnership in Brazil points the way to a model for popularizing solar energy among companies

The Brazilian Association of Energy Conservation Companies (Abesco) declares that the high price of electricity is one of the obstacles to growth of companies in Brazil, with prices expected to rise still further over the next few years at an average annual rate of 9% by 2020. Set against such a scenario, the possibility of generating your own electricity through photovoltaic systems ought to be very attractive, although many businessmen still consider it to be an option with limited access.

This view could be about to change with the partnership between ENGIE and the State of Santa Catarina Association of Supermarkets (ACATS) showing the way to facilitate and cheapen the acquisition of photovoltaic systems and providing a model for attending the most varied of business sectors.

This initiative, unique in Brazil, was finalized in December and provides an evaluation of the potential for solar generation from supermarket roof tops in the state of Santa Catarina as well as the discount on the final price according to the number of photovoltaic systems acquired by ACATS’ members.

This option for distributed solar microgeneration will significantly reduce the operational costs of the supermarkets in the state. The Brazilian Supermarkets Association (Abras) states that electric energy currently represents the second largest operational cost of a supermarket, second only to payroll.

“Following the installation and connection of the photovoltaic system, the supermarket will immediately begin generating part of its energy at a cost less than supplied by the electricity distributor. Yet another advantage which photovoltaic generation offers is the production of energy over a 25-year period at a fixed cost”, explained Rodolfo Souza Pinto, CEO of ENGIE SOLAR.

Economy

To better understand the savings once a photovoltaic system is installed, see the following example:

A commercial unit where the monthly expenditure is in the region of R$ 2,200.00 can achieve an annual saving as high as R$ 18,000.00 on the basis of an average investment of R$140,000.00 in a photovoltaic solar energy system. This is equivalent to an average return on investment of seven years, bearing in mind that the system has a useful life of more than 25 years with a guaranteed performance over this same period and at a low maintenance cost.

From the environmental point of view, this production of clean energy corresponds to 1000 planted trees or 300 thousand kilometers of travel in a popular make of car. Over the 25-year period, the savings on emissions are more than 500 tons of CO2.

Alternative for other sectors

ENGIE points out that the partnership with ACATS can easily be replicated with other corporate associations. For example, the Brazilian Shopping Centers Association (Abrasce) provides data showing expenditures with electricity reaching 45% of overhead costs of a shopping center. In the same way, the Brazilian Hospitality and Food Federation (FBHA) points out that the hotel and food segment represents today 13.4% of energy consumption in the commercial sector corresponding to 7,301.4 GWh.

These and other associations have much to gain in shifting the focus to photovoltaic systems. As well as representing a reduction in expenditures, companies in these sectors will be showcasing their support for propagating solar energy, a renewable and clean source in Brazil.

“Initiatives like this encourage and guarantee best purchase conditions for consumers and help foster the growing market for decentralized generation. Other agreements are already under negotiation and will be announced shortly”, Sousa Pinto concluded.

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