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To mitigate this problem, the Free Solar Movement association has been investing in the formation of state fronts that work with parliamentarians in each state, providing coverage throughout Brazil to intensify pressure for the approval of Bill 624, which corrects distortions in the legal framework of distributed generation and protects consumers and companies from abuses by utility companies. The solar energy sector in Brazil is in danger. According to the president of the Free Solar Movement (MSL), Hewerton Martins, around 300,000 jobs could be lost by the beginning of next year. This is a direct consequence of what the executive calls abusive practices and arbitrary interpretations of Law 14,300 by electricity distributors. Small and medium-sized companies, responsible for the dissemination of distributed generation in thousands of municipalities, are facing a scenario of non-viability, with massive rejections of projects and difficulties imposed on consumers. Since October, distributors such as CPFL, RGE and Cemig have rejected half of the photovoltaic projects submitted, in many cases without consistent technical justification. According to Martins, Resolution 1.098 of the National Electric Energy Agency (Aneel), which regulates the analysis of projects of more than 7.5 kW, is being used as a pretext for arbitrary decisions that penalize consumers and companies. The resolution does not authorize electricity companies to automatically reject projects above this limit. There must be a technical analysis, but it is not being done transparently, explains the president of the MSL. The impact is already devastating. In Minas Gerais alone, 1,200 companies in the sector have recently closed, and up to 30,000 more are expected to close soon. These companies, many of them formed by qualification programs of the Brazilian Service for Support to Micro and Small Enterprises (SEBRAE) and the National Industrial Learning Service (SENAI), generate an average of 10 direct jobs each. In addition to the impact on jobs, municipalities lose the economic benefit generated by lower energy bills, which translates into more money circulating in the local economy. Engineer Diego Fortes de Paula of Solartop, a company operating in Santa Cruz do Rio Pardo in the interior of São Paulo, reports that he is facing a wave of rejections that is making business unviable. “In the last month we have had 16 projects rejected. One client with an 8 kW system was limited to 3 kW, while another with 10 kW was allowed to install only 1 kW, which does not even cover a single panel,” he told pv magazine . One of the solutions proposed by the distributor CPFL for this 10 kW system was to install a hybrid system with a battery, which according to the engineer was not feasible for the client. “The cost of this 10 kW system was 18 thousand reais (about 3 thousand dollars), while the budget for the battery generator was 36 thousand reais. The price doubled and the client did not close the deal,” he explains. This scenario also directly affects consumers, especially those who choose to finance solar systems. “As a rule, it takes 15 days for the opinion to be analyzed. It takes another 20 or 30 days to finalize the purchase of the kit. So a project that would take 30 days to complete now takes closer to 60 days. Microgeneration is declining in Brazil,” explains de Paula. One of the most common arguments used by electricity companies to limit or reject distributed generation projects is the alleged overloading of transformers. However, according to Martins, this argument does not hold up technically. He explains that in many regions, especially in rural and urban areas with high demand, the electricity system is already overloaded due to conventional consumption. In this context, generating ones own solar energy not only reduces consumption on the grid, but also relieves the transformer, generating a direct benefit for the system. “Generating our own power on the roof is relieving this transformer, which is throttled by loads. It also reduces the need for investments by the electricity company, which would be passed on to all consumers,” says Martins. He stresses that distributed generation, in most cases, represents a small volume and is far from exceeding the consumption of conventional units. To combat misinterpretations of the rules governing the sector, the MSL proposes legal and political actions. On the organizations website there is a model of a public motion for municipal chambers of up to 5,000 municipalities to pressure senators to support Bill 624, which seeks to adjust the text of Law 14,300 to prevent distributors from distorting its provisions, hindering the growth of distributed generation. In addition to Bill 624, another bill in the pipeline, Bill 671, directly addresses the abuse of power by utilities. It seeks to prohibit distributors from operating in the “solar subscription” market, a practice that Martins says creates a monopoly on the distribution grid. “This concentration of power limits competitiveness and harms consumers, who should be free to choose how to generate or consume energy,” explains the MSL president. Political action is gaining momentum with the expansion of the Free Solar Movement’s state fronts. There are already 11 fronts in operation in Minas Gerais, São Paulo, Mato Grosso do Sul, Rio Grande do Norte, Bahia, Maranhão, Amapá, Paraíba and Pará, in addition to the most recent ones in Goiás and Rio Grande do Sul. “We are expanding the mobilization in each state, with the aim of strengthening political support and ensuring the protection of consumer rights in Brasilia,” concludes Martins. The moment is critical. Without immediate action and unity of the sector to correct abuses and ensure transparency of processes, Brazil could regress in one of the most promising sectors for the sustainable and economic development of the country, says de Paula. |
