Family agriculture comes into ENGIE Solar’s sights
ENGIE is one of the first companies in the Brazilian energy sector to obtain Ministry of Agrarian Development (MDA) registration as a supplier of photovoltaic systems eligible to family farming entities for financing. With this, the company’s product receives accreditation so that its acquisition can be made under the National Program for Strengthening Family Farming (PRONAF) financed by the Brazilian Development Bank (BNDES), as for example, through the PRONAF More Food program permitting rural producers to invest in renewable energy up to a ceiling of R$ 165 thousand with a repayment schedule of ten years and an annual interest rate of 2.5%, one the lowest in the market.
Registration of a product eligible for financing by MDA comes with certain restrictions including price, local content (in order to receive FINAME financing) and the company’s membership of the Brazilian Photovoltaic Solar Energy Association (Associação Brasileira de Energia Solar Fotovoltaica – ABSOLAR). The company satisfies all these requirements. “Solar energy is a readily available and viable resource which has come to provide an added boost to Brazilian agribusiness”, says Rodolfo de Sousa Pinto, president at ENGIE Solar. “And the obtaining of the MDA code by ENGIE brings rural producers closer still to this resource now they can count on easy finance to acquire the systems”, he says. Solar energy is undergoing rapid expansion in Brazil with the number of installed photovoltaic systems surpassing the 20 thousand unit mark in January of this year, nearly three times greater than the 7.7 thousand in early 2017.
Clean energy is more economic for agribusiness
The investment in a photovoltaic solar generation system is most attractive to rural producers because in the light of financing alternatives available, in some cases the discount on the value of the monthly energy bill is equivalent to the installment payable on the financing: what is saved on the light bill is used for paying off the loan installments. Again, when the loan is finally liquidated, the producer will have a system for generating electricity on his property almost free of charge thanks to the solar panels which enjoy low maintenance costs and a guarantee of energy generation over a 25-year period.
How the technology works
A photovoltaic solar energy system also known as a solar energy system or, again, a photovoltaic system, generates electrical energy from solar radiation. Normally installed on rooftops, the technology is the most popular one on the planet for distributed clean and renewable microgeneration of energy. Homes and companies which have these systems produce their own energy which they consume, any surplus being injected into the electricity distribution network and transformed into credits with the Distributor. Such credits have a five year validity and are used when the unit is consuming more energy than is being generated, as is the case at nights or on rainy days.
ABOUT ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 97,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose (“raison d’être”), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2022: 82.6 billion Euros.
In Brazil, ENGIE, leader in 100% renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. The Company
has in the country an installed capacity of 12,5 GW, originated from renewable sources and with low GHG emissions, such as hydro, solar and biomass power plants, and windfarms.
With the acquisition of Transportadora Associada de Gás – TAG, ENGIE now also owns the largest natural gas transportation network in the country, at 4,500 km and transecting 10 states and 191 cities.
The Group has a complete portfolio of integrated solutions focused on reducing costs and improving the infrastructure for companies and cities, such as energy efficiency, public lighting, energy monitoring and management.
With 2,800 employees, ENGIE’s turnover in Brazil in 2023 was of R$ 11.7 billion. ENGIE trades on the B3 through its energy generation and trading company, ENGIE Brasil Energia, under the ticker EGIE3. In addition to being a B3 Novo Mercado component, the Company is one of the very few companies that have been listed in the Business Sustainability Index since its creation in 2005. In 2021, ENGIE Brasil Energia was included in the Carbon-Efficient Index (ICO2), made up of IBrX 100 companies that are most transparent in terms of GHG emissions reporting and how they are preparing for a low-carbon economy.
The company also received in May 2024 the certification Great Place to Work, a recognition which validates the continuous commitment of the company to create a positive and inclusive work environment for all.
The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris – Europe 120/France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).