RJ should drive GD growth in the country after ICMS exemption

Minas became the isolated leader of GD precisely because it adopted, with pioneering spirit, tax incentives for generation

The state of Rio de Janeiro should double its installed capacity in microgeneration and minigeneration systems of electrical energy, taking fourth place in the ranking of DG (distributed generation) in Brazil in 2021. This is what the projections of ABGD (Brazilian Association of Distributed generation).

According to the association, the state's growth will be boosted due to the exemption of projects of up to 5 MW from ICMS (Tax on Circulation of Goods and Services). The law, approved by Alerj (Legislative Assembly of Rio de Janeiro), was sanctioned by the governor at the beginning of the month.

Today, the state occupies eighth place in the Brazilian ranking of installed power, with 138 MW. In first place is Minas Gerais, with 674 MW, followed by Rio Grande do Sul, with 420 MW, and São Paulo, with 403 MW. In MG, the ICMS exemption for projects of up to 5 MW has been in force since 2017.

“Minas became an isolated leader in DG precisely because it pioneered the adoption of tax incentives for distributed generation with renewable sources made by consumers themselves. With all the benefits arising from GD, Rio de Janeiro will require almost 3,5 new specialized jobs to install all these systems”, says Carlos Evangelista, president of ABGD.

Evangelista also highlights that the post-social isolation economic recovery should also contribute to the significant increase in installed power in RJ. “Generating your own energy can be an interesting tool for recovering company revenue, as it considerably reduces electricity bills. Furthermore, the search for sustainable and decentralized options has been increasing”, highlights the executive.

Marco Weirich, partner at Joulew Negócios em Energias Renováveis, highlights the advantages of enacting the law for the state and the country. “It is worth highlighting the positive actions of this measure, among them, the reduction of costs for consumers in the regulated market, the growth of integrating companies that will generate direct jobs, opportunities for manufacturers of technology, electrical and metallic materials and for rural producers, who will be able to lease their areas for solar farm installations. In short, an entire production chain providing an increase in the state economy and contributing to a more sustainable world”, highlights Weirich.

 

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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