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Professionals in the solar energy sector denounce unfair competition from Cemig

Public hearing debated the obstacles that entrepreneurs are facing in order to implement projects

Solar sector professionals denounce unfair competition from Cemig

Representatives of the solar sector presented complaints at a hearing. Photo: Clarissa Barçante (ALMG)/Disclosure

With the collaboration of Ericka Araújo.

A complaint that the Cemig Yes is practicing unfair competition to enterprises in the solar energy industry was the main topic of the public hearing of the Mines and Energy Commission of Legislative Assembly of Minas Gerais this Wednesday (23).

Businesspeople in the photovoltaic sector questioned the distributor's performance, claiming that it would be disapproving connection requests from integrators to later contact their customers to offer system installations.

The meeting was requested by deputies Gil Pereira (PSD), president of the commission, and Ricardo Campos (PT). Parliamentarians were motivated by reports from representatives of associations and entrepreneurs in the area.

At the meeting, Marco Aurélio Prates, electrical engineer and director of Solar Plates, reported that he felt this unfair competition first hand. He said that he received a budget request from Univale (Vale do Rio Doce University), based in the municipality of Governador Valadares, regarding a plant to meet the institution's demand of 150 thousand KWh per month.

He said that a 1,3 kWp plant was proposed and that, as is customary, he checked the network availability with the distributor. “Ten days after filing this demand, Cemig Sim went to the university and presented conditions under which it became the only option for the university,” he said.

Prates also explained that the project has a cost of R$6 million and that, if it were carried out with his company, there would be an additional amount of R$3,3 million to improve the network.

Reformulation at Cemig

The regional director of ABGD (Brazilian Distributed Generation Association) in the Sudene Mining Area, Walter Moreira Abreu, highlighted that Cemig Sim's actions of offering solar energy for buildings in the same locations where entrepreneurs' projects were rejected is unacceptable.

He called for a reformulation of the company's activities and added that the way Cemig has managed initiatives aimed at the sector demonstrates that it has become a competitor of projects in the area and not a driver of development.

In its turn, Barbara Rubim, vice president of distributed generation at ABSOLAR (Brazilian Association of Photovoltaic Solar Energy), said that, since February this year, there have been numerous reports of obstacles to projects by entrepreneurs in this area. “The sector is being suffocated little by little. We really need to come up with an action plan.”

Also present at the hearing was the president of the MSL (Free Solar Movement), Hewerton Martins, corroborating Bárbara Rubim’s speech. “Energy integrators and distributors are bleeding,” she said.

He also addressed unfair competition in enterprises and said that distribution provided a way to reach the generation. “That’s without an auction or anything. On the other hand, it rejects projects in the area, alleging reverse flow”, he commented.

Hewerton Martins, from MSL, and Bárbara Rubim, from ABSOLAR. Photo: Disclosure

Jomar Britto de Oliveira, vice president of MSL, highlighted that Cemig has used the flow reversal as an “excuse” to justify the denial of connections for new solar energy projects in Minas Gerais.

He pointed out that this measure by the distributor has made many companies in the sector feel demobilized. “I feel an inability to compete with Goliath. This Cemig Sim brings unfair competition,” he stated. 

Marina Meyer Falcao, president of the Energy Law Commission of the OAB of Minas Gerais, reinforced the need to comply with Law 14.300 and Article 73 of Aneel Resolution 1.000 as well as the Accessor's Right to the energy distribution network, an essential public right. The lawyer also reinforced what Hewerton said about support for micro and mini energy generators.

Cemig representative provides clarification

Alisson Chagas, representative of the Engineering, Innovation, Planning and Asset Management Superintendency of cemig, highlighted that nine million customers are currently served by the distributor, which needs to guarantee adequate voltage and equipment integrity.

He also commented that the company has once again issued opinions on new projects. “We issued 36 thousand this year, 86% of them without works, in direct connection. For 17% there was a need for work and 2,6% of this total was due to the issue of no longer having system capacity, with transformers in the substations being overloaded,” he argued.

Finally, he emphasized that the ONS (National Electric System Operator) published a technical note claiming that there is no remaining capacity in the North and Triângulo Mineiro areas. “So, we also need to seek a joint solution with the federal government,” he said.

Absence of the Minister of Mines and Energy, Alexandre Silveira, in the debate on Cemig

Also during the hearing, professionals commented on the absence of the Minister of Mines and Energy, Alexandre Silveira, in the discussion on this matter.

The professionals said that the head of the Ministry does not show sensitivity towards small employers' projects and has not had space on the agenda to talk about this issue, despite having been present a few days earlier in Belo Horizonte (MG) to deliver vehicles.

Professionals question the absence of minister Alexandre Silveira. Photo: Disclosure

“I'm enjoying seeing a poster addressed to Minister Alexandre […] it's good that he will also understand the role he has in the Lula government, of developing not only the proposal for an energy that is sunshine for everyone, which we do defense, but that he also understands that we defend that this energy should be accessible to the poorest”, commented deputy Leleco Pimentel (PT).

“Minas, the minister's hometown, awaits a response and dialogue with GD entities and professionals to discuss the difficulties that the sector has been facing with Cemig”, commented the president of MSL.

The professionals also commented that they expect the minister to change his conduct and look at the segment that has employed several professionals in recent years and that today, due to this difficult scenario, is witnessing the closure of companies and jobs.

O Canal Solar contacted the MME (Ministry of Mines and Energy) to obtain an answer to these questions. To date, there has been no response from Pasta.

Henrique Hein
About the Author
Henrique Hein

He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

Comments (15)

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Comments should be respectful and contribute to a healthy debate. Offensive comments may be removed. The opinions expressed here are those of the authors and do not necessarily reflect the views of the author. Canal Solar.

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  • Vanessa fields

    Unfortunately, it is harming many companies.
    Fortunately, my company operates in three different ways, so when one doesn't go well, the other stands out. If you want to form a partnership and be able to operate in other states without leaving Minas Gerais, I'm available. Click on the link.
    https://wa.me/41996938663
    41 99693-8663

  • Ademilson Xavier

    Good morning everybody,
    It's incredible how the lower class is faced with such atrocities. Here in Ceará it's no different. The most coherent thing is a national mobilization before it becomes a case law.
    Success to everyone.
    Ademilson Xavier

  • Nicodemus lopes dos santos

    IN MY UNDERSTANDING, I THINK IT WILL BE NECESSARY TO BUILD NEW SUPPORTS, AS THE PHOTOVOLTAIC SECTOR HAS GROWN A LOT AND THE CONCESSION COMPANY IS NOT READY FOR THIS.

  • July

    It's hard to understand why people spend money to have independent electricity, but they want to continue to have a connection with the utility company! Forget about the utility company. You want to get rid of it or stay involved. The goal is to save money, not make money. If you want to make money, supply it to your neighbors. All you need is a cable connected to the DC in their house. It's simple and cheap, and the price is the same. Buy batteries so you don't have to worry about days with little sun. Then, every day, you'll have more autonomy!

  • Solange

    I thought the article was going to mention floating solar plants of up to 170MWp expected to be implemented as DG by Cemig.

  • Cleiton Machado

    It is regrettable that we have to witness these situations, a total lack of respect for Brazilian entrepreneurship.
    we should have a rule to punish such attitudes.

  • Geraldo Expedito Guimarães Mendes Junior

    Congratulations to everyone who participated in this meeting, it is the purest truth, unfair competition, a thousand obstacles, in short, it is trying to suffocate the sector and the integrators. We want the facilitating agent who comes to aggregate the sector.

  • Sok

    This is today's world, no matter what, where money comes in, people fight with all their weapons to screw others. They don't want competition, it doesn't matter if the proposal will bring improvements to the system by polluting less, etc., because what matters is the money.

  • Damia Solar

    Loyal competence is essential for the sustainable and equitable development of any sector. It is worrying to hear about allegations of unfair competition by Cemig towards entrepreneurs in the solar sector. Solar energy has immense potential to transform the energy matrix and contribute to sustainable development, and it is essential that all actors work together to achieve this objective. En Damia Solar, we believe in collaboration and clean play to ensure that the energy transition benefits everyone. We hope that constructive solutions will be found to address these concerns and continue promoting solar energy in Brazil.

  • Fernando

    Precisely because I don't trust CEMIG, I installed off grid.

  • Antonio Neto Brandao

    Good article!! Congratulations to the participants in this initiative to maintain equal rights for all.

  • JORGE GUSTAVO DE ARAUJO

    It's absurd what they are doing to thousands of companies and voters who defend the sector that today employs millions of people, entire families throughout Brazil, generating taxes for municipalities, states and the federation where our senators are, where our deputies are, many of these millions were put on you, so here I express all my repulsion to those who want to destroy the photovoltaic sector not only in Minas but throughout Brazil, united we are stronger than we will win.

  • Thereza Neumann

    This service focused on solar energy is just the “thread of the story” of hundreds or thousands that will come with the regulation of ACCESSORY SERVICES in the new concession contracts of all Distribution Concessionaires in Brazil. And this, along the lines of what Coelce ^ in Ceará with the Coelce Plus program, where they performed all types of services practicing a true monopoly and unfair competition... destroying jobs and companies in Ceará. We are starting a national movement against Aneel and %with professionals, o and society.
    I am available to clarify anything you may wish.

  • Re Alves

    Where is Cade to regulate the unfair competition of small entrepreneurs with the state monopoly holder? (not that it has any impact on being state-owned, in other states, with private networks, they also suffer from the same types of problems). Distributors should not even be able to compete and offer this type of service... but, just my opinion.

  • Marcelo Poubel

    We have to be careful with Cemig, because they are always increasing energy prices above their costs. A minimum consumption cost is too high, because they saw that the solar system brings savings to consumers and so they regretted this minimum cost, pure greed.

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