Clean energy: advantages for companies in the Free Energy Market

Recent years have been marked by intense discussions among governments, companies, and people around the world about sustainable development. As a way to preserve the environment and boost the electricity sector, Brazil has increasingly invested in renewable energy generation.  

With the change in the population's consumption habits, companies are increasingly focused on rethinking their internal policies to ensure long-term growth and sustainable development. A fundamental part of this reassessment is the use of clean energy, which can offer significant advantages for businesses.  

A notable example of this is the growing participation of companies in the Free Energy Market, which provided savings of over 200 billion reais from 1999 to 2019, due to free competition within this contracting environment. 

Continue reading to understand what clean energy is and how Serena can help your company thrive through clean energy. See how to enter the Free Energy Market, taking advantage of all the benefits! 

What is clean energy? 

Clean energy is produced without emitting pollutants into nature, unlike energy generated from sources such as oil, coal, and natural gas. Its generation occurs thanks to renewable energy sources, such as wind, water, and the sun, for example. 

Data from the National Power System Operator (ONS) shows that in the first quarter of 2023, an average of 91.4% of the electricity supplied to the Brazilian population by the National Interconnected System (SIN) was served mainly by renewable energy sources. A study conducted by Greenpeace showed that, in a few years, clean energy sources should represent the largest share of electricity consumption across the country. 

Forms of clean energy 

There are several renewable energy options for companies. Among the most popular are: 

• Solar energy: generated from photovoltaic panels exposed to the sun to transform captured solar radiation into electric current. The higher the radiation, the greater the amount of energy produced. 

• Wind energy: obtained through the power of wind. Wind turbines are installed for this purpose, moving according to wind intensity to transform motive force into electricity. 

• Hydroelectric energy: generated by the force and movement of river waters. In Brazil, it is the main source of electricity.

Advantages of clean and renewable energy 

Now that you know what renewable energies are, you are probably wondering what the advantages are for businesses. There are many! But in order for you to choose these energy sources for your company and enjoy these benefits, you need to enter the Free Energy Market. Understand how Serena can help you at all stages of the process.  

After entering the Free Energy Market, you will be able to: 

Choose your energy suppliers to negotiate the best prices and rates 

In the Free Energy Market, it is possible to choose from whom your company wants to buy energy, negotiating prices, deadlines, and payment methods. Depending on the type of energy source chosen, you can get discounts on the Distribution System Usage Tariff (TUSD), in addition to saving up to 30% on your company's electricity bill. 

Have cost predictability 

When negotiating the purchase of energy in the Free Market, your company starts working with planned costs and expense control, since it is possible to sign contracts with fixed values, avoiding surprises with tariff changes, for example. 

Be even more competitive in the market 

Sustainable growth is an economically positive market trend. A study released by APAS (São Paulo Association of Supermarkets) revealed that 95% of Brazilians choose products and services from brands that invest in sustainability.  

The general director of APAS SHOW, Carlos Corrêa, states: “In addition to offering products that meet their needs, consumers have been choosing brands that invest in environmental preservation programs and where sustainability is not just in discourse.”  

By adopting policies that help preserve nature, your business can also attract more consumers in the medium and long term.

What is the Free Energy Market and what is it for? 

To understand how energy supply works in Brazil — and the possibility for companies to negotiate in the Free Energy Market —, here is a general overview of what the Free Energy Market is. 

There are two groups of electricity consumers in Brazil: those participating in the Free Contracting Environment (ACL) and those in the Regulated Contracting Environment (ACR). 

The Regulated Contracting Environment consists of captive consumers, who use services purchased from utilities — and pay, through a monthly bill, for energy distribution and generation services, in addition to other components regulated by the government. 

The Free Contracting Environment (ACL) involves the group of consumers who can choose their energy supplier. 

The Free Energy Market is an environment for negotiating electricity prices in a competitive way. In it, participants can negotiate directly with energy traders – which can also be generators and developers – the price, the amount of energy contracted, the supply period, payment methods, and other conditions. 

To participate, your business needs to meet certain prerequisites. As of January 2024, companies with a minimum energy demand of 2.3 kilowatts or business units connected to the same root corporate tax ID (CNPJ) that add up to this energy can already enter the Free Energy Market. 

Energy sources 

Within the Free Energy Market, it is possible to find two types of electricity sources: conventional and incentivized. 

Incentivized energy was determined by the government to stimulate the development of renewable energy generation plants, such as Small Hydroelectric Power Plants (SHP), wind, solar, biomass, and qualified cogeneration. Free consumers who use these sources receive discounts ranging from 50% to 100% on transmission and distribution system usage tariffs. 

Conventional energy, as its name suggests, is produced by other types of generators, such as large hydroelectric plants and fossil fuel thermal plants (coal, gas, oil), but does not provide the benefit of tariff discounts for grid usage. 

Which companies are in this market? 

Regardless of the sector your company belongs to, it is possible to enter the Free Energy Market. We can see that, over time, companies from different fields have started participating in this market, such as: 

• Eurofarma — the first pharmaceutical multinational with 100% Brazilian capital; 

• Grupo Bom Pastor — a furniture manufacturer in Minas Gerais since 1986; 

• Air Liquide — one of the largest gas, technology, and service companies for the industrial and medical sectors in the country. 

Why enter the Free Energy Market? 

With more choice options, companies can buy the amount of energy to be consumed according to their needs and business profile, adjusting the supply period and the agreed price. 

In addition, it is possible to secure energy procurement in the short, medium, and long term, anticipating energy expenses established during the contract period — which optimizes expense predictability and overall financial management. 

Another important factor is that the use of clean energy is one of the pillars of policies that define an organization as a sustainable company. This choice adds value to the purpose and, consequently, to your company's image, both relative to market competitors and to attract consumers who support sustainability. 

I still don't have the profile to be part of the Free Energy Market, now what? 

If your company does not yet have the profile to enter the Free Energy Market, don't worry. There are other ways to seek savings on your electricity bill while opting for clean energy. Serena analyzes your consumption profile and finds the best energy plan for you to save throughout the year and choose clean and affordable energy.  

How can Serena help? 

In addition to understanding how the Free Energy Market works for companies, this is a great opportunity to align more closely with sustainable practices.

When looking for a supplier, besides checking which one can provide better conditions for energy supply, it is necessary to consider benchmark companies in the market. That's where Serena comes in! 

With more than 15 years of history, Serena is a global company and the source of energy of prosperity for all its stakeholders. It is a benchmark in clean energy investments and technology in the Americas.

Serena generates energy for a new era, offering value through efficiency with clean and affordable energy.

Calculate your savings and gain access to the energy of prosperity.