Magazine Luiza Closes Deal to Operate 214 Stores Exclusively on Solar Energy
RIO DE JANEIRO, BRAZIL – Magazine Luiza has closed a deal with GreenYellow to supply solar energy to 214 of its over 1,100 stores. The contract, which works on a rental model, provides for the delivery of 9307.1 MWh per year.
The agreement was signed in the first quarter this year, but the energy is expected to be delivered as of 2021. The chain’s 214 stores will then fully run on sustainable energy.
The retailer’s initiative is not unprecedented: according to June data released by the Brazilian Association of Photovoltaic Solar Energy (ABSOLAR), 39.5 percent of the solar energy used in the country is consumed by the trade and services sector.
Recently, Nike announced that its main logistics center has begun to generate 80 percent of its own energy demand. In operation since the first quarter, the Louveira (São Paulo) distribution center’s solar plant generates an average monthly 100,000 kWh. This is the greatest potential in a logistics venture in the country.
However, in the case of Magalu, rental was the model selected, which means that the company will not install photovoltaic panels in its stores, but will use energy purchased from a partner, in this case, GreenYellow, a subsidiary of the French retail group Casino that owns Assaí, Extra and Pão de Açúcar supermarket chains. The company has invested over R$18 million (US$3.6 million) in the plants that will supply energy under the new contract.
The photovoltaic plants in Coroados and Riolândia, in the state of São Paulo, and Florestópolis, in Paraná, will be involved in the project. Together, they have a total of 4,861 KW installed power, enough to supply 4,200 homes or 23,825 TVs per year, for instance.
Trend
The retailer’s decision is in line with financially and environmentally sustainable management trends. “The energy rental model is interesting for companies that have another end activity. Thus, they can focus their efforts on what is most important to their business, while saving energy,” says Rodrigo Sauaia, ABSOLAR’s CEO. He explains that this type of energy has become cheaper over time. The technological progress, the increase in the production scale, and the greater competitiveness among generators are some of the reasons that make this segment more interesting from a financial standpoint.
“From 2010 until now, solar energy has seen its price drop 86 percent, according to Bloomberg data,” Sauaia says. Thus, in addition to the image gain that companies achieve by making ads of this sort, there are prospects that investment in clean energy will provide better results in retailer’s finances. “While solar energy is cheaper year after year, electricity is readjusted above inflation. In 2021, we may still see an increase in tariffs to offset the readjustment that was not made this year,” says the president of ABSOLAR.
For Ricardo Teixeira, MBA coordinator in business management at the Getúlio Vargas Foundation (FGV), the search for clean energy is a global trend. He believes that Brazil has the chance to become one of the world’s leading suppliers of this resource. This is due to the fact that the country enjoys sunshine all year round, in addition to favorable winds and space for wind farms. He explains that building an image of caring about the planet is a positive factor for companies because it builds customer loyalty.
Source: O Estado de S. Paulo
More: Brazil news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
Brazil runoff, Sunday, October 25: When is the Brazil runoff election. Latest: Brazil runoff polls, Flávio 51%, Lula 49%.