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Home / News / Market and Prices / DG market remains firm due to the dispersion in the sector

DG market remains firm due to the dispersion in the sector

If any company closes, another will open, contributing to economic security, says president of ABGD
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  • Photo by Ericka Araújo Ericka Araújo
  • October 11, 2022, at 15:30 PM
2 min 49 sec read
DG market remains firm due to the dispersion in the sector
Systems installed in government institutions. Photo: Curitiba City Hall

Micro and small businesses generate 27% of Brazil's GDP (Gross Domestic Equity), according to recent data from Sebrae. This number includes integrators in the solar energy sector. The participation of these entrepreneurs represents the pulverization of industrial hubs through the creation of APLs (Local Production Arrangements).

This reality in all Brazilian states brings balance to the financial market and healthy local competitiveness, reducing the productive impact. In other words, if a company closes, another will open, contributing to economic security in the region. The statements were made by Guilherme Chrispim, president of ABGD (Brazilian Association of Distributed Generation), during the episode #70 of Papo Solar.

Chrispim related the exponential growth of GD (distributed generation) by the decentralization of large hubs. He highlighted that such a scenario is advantageous because it fosters the local market, contributing to the generation of jobs and income, stabilizing the economy and providing security to the financial sector of that region. “Today, in the DG market, we do not have the dependence on having only one large plant. When DG arrives, it shakes up the market,” he said.

The executive also uses the electricity sector as an example, such as the Itaipu plant, which centralizes resources, making it impossible to create a broad market. For him, this movement creates a chain reaction for the sector, generating services to keep the plant or facility running. “More companies, more people, driving the local economic chain, and the sky becomes the limit in this cycle,” he adds.

Slowness of the Legal Framework

The president of the association also pointed out, during the conversation, how electricity has been taking up an increasingly larger space compared to other means, which also generate energy, but are seen as old resources. According to Chrispim, the subordination to energy has never been so clear, and he even calls it the “obvious hidden” dependence without knowing that it exists.

The discussion led the executive to draw attention to the ANEEL (National Electric Energy Agency). The Agency missed the deadline to assess the benefits of distributed generation and has not yet commented on dates. “This opens a discussion in a legal space between DG companies and the Law, which does not bring benefits and does not fulfill the purpose of creating the Law, which would be legal certainty. We do need to finalize 14.300”, he explains.

The president of ABGD concludes by saying that the procedure after the conclusion of the standard will be beneficial to the sector, since the logic remains on the side of the companies. Entering the DG market will still be seen as a good deal, since energy is an essential resource and will not lose space in the sector, maintaining positive growth, now with the legal power. “The Mobility is coming and it's coming with a lot of force, not only here but throughout the world, storage will be for the electricity sector what the smartphone was for telecommunications”, he concludes.

Watch the full episode

ABGD (Brazilian Association of Distributed Generation) Solar Talk
Photo by Ericka Araújo
Ericka Araújo
Communications Leader Canal Solar. Host of Papo Solar. Since 2020, he has been following the renewable energy market. He has experience in producing podcasts, interview programs and writing journalistic articles. In 2019, he received the 2019 Tropical Journalist Award from SBMT and the FEAC Journalism Award.
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