Challenges of the distributed generation market in 2023

O Marketplace in solar energy in Brazil lived a challenging year in 2023. Given this scenario, companies adopted some strategies and actions to face the obstacles encountered by the sector. A Solar Sphere, for example, was one of them.

Eduardo Villas Boas, CEO of the company, commented on the strategies that the company implemented and what were the challenges encountered by the G.D. (distributed generation).

“The entry into force of the Law 14,300 may have implied regulatory changes in the energy or renewable energy sector, requiring adaptations to the Solar Sphere processes and strategies”, he pointed out.

“There were still difficulties in approval in financing, which may have affected the investment capacity of Esfera’s clients”, added the executive.

Another point he mentioned is the sharp drop of the prices of the modules in the international market, which pressured equipment distributors to make difficult and quick decisions to adapt to this new price reality.

“Finally, the segment had difficulty in approval in projects before some energy distributors, in which the distributors did not grant approval for projects with the excuse of flow reversal”, highlighted Villas Boas.

Strategies adopted by Esfera

Below are the strategies and actions adopted by the company, according to the CEO.

• Investment in technology: the company focused on investing in its sales platform to speed up budgets and provide detailed information about products and orders to integrators;
• Integration of platforms and technology in logistics: the integration of the sales platform with the ERP and WMS in logistics helped to speed up the generator manufacturing process, reducing errors and using RFID technology to improve materials management;
• Creation of the Plants BU (Business Unit): this action resulted in positive results, opening up opportunities for contact with integrators and investors focused on the plant rental market;
• Strategic partnerships: Esfera signed agreements with Canal Solar and GSH Engenharia to offer reengineering, commissioning and engineering support services for integrators that focus on sales, but do not have their own team to deal with the bureaucratic and engineering aspects;
• Alignment with other distributors and equipment manufacturers: Esfera joined INEL and MSL to help support these two entities in defending the interests of the DG/GC market.

“These strategies aim to improve operational efficiency, create value for the Esfera brand and help customers and partners face the challenges faced by the distributed energy generation sector, while offering comprehensive support across various aspects of the business,” he stressed.

2nd semester results and strategic partnerships

Eduardo Villas Boas also commented on the company's results in the second half of this year, with emphasis on the BU of DG Plants from 1 MW to 5 MW. “This achievement was driven by strategic partnerships with renowned companies in the sector, such as Canadian Solar, DAH Solar, Sungrow and Huawei.”

“We are very proud of the results achieved in our BU. The partnership with Canadian Solar, DAH and leading companies in the inverter segment allowed us to advance and meet market expectations, strengthening our position in the renewable energy sector”, he highlighted.

Furthermore, the executive emphasized the choice of Esfera by Paraty Energia to supply three systems of approximately 3 MW each. “The negotiation for the supply of the plants was marked by professionalism and mutual development,” said Pedro Pileggi, CEO of Paraty Energia.

“We are excited about the plants coming into operation later this year, according to the established schedule. Paraty is confident in the market and intends to continue investing next year, considering the possibility of developing more plants”, reported Pileggi.

Flávio Marqueti, partner at Paraty GD, highlighted that the negotiation for the purchase of generators, at that time, included a lot of volatility in module prices due to variations in polysilicon values in China and Esfera, on merit, obtained an understanding of this context and provided the necessary speed to complete the negotiation and close the orders.