JMalucelli Energy: Generation, Transmission and Sale of Energy
This company profile originally appeared in the February 2015 issue of Energy Digital.
Operating for over 13 years within the national territory, JMalucelli Energy (JME) has a portfolio of 1133 megawatts in operating assets and power generation projects, 1100 km of transmission lines, and many substations. The holding company is one of the largest business groups in the state of Paraná and has more than 70 companies operating in various sectors of the Brazilian economy, including construction, sales and rental of heavy equipment, finance, communications, and others. JME operates in the generation, transmission, and sale of energy, from the identification of potential developments in inventory to the deployment and commercial operation of the project.
The company focuses its investments on power generation projects from renewable sources in wind, hydroelectric, and solar parks. JME seeks to develop, implement, and operate its assets in clusters that allow for cost optimization in all stages of operations. JME’s assets and hydroelectric generation projects are concentrated in Goias, Mato Grosso, and Paraná, while its wind projects are distributed in two regions of Rio Grande do Norte. Currently, JME participates in 187 MW in wind farms and 62 MW in hydroelectric generation. It also has four transmission lines in operation, in addition to approximately 500 MW in wind, hydro, and photovoltaic park projects.
THE ENERGY INDUSTRY
Because it is a private and independent renewable energy company--it has no ties to major distributors--JME enjoys benefits. “Our competitive advantage lies in the development of core competencies of JMalucelli Group--heavy construction and financial structuring--combined with a very lean structure in the holding company,” explains the JME CEO João Marcos Prosdócimo Moro.
The company consists of 14 professionals with extensive experience in development and the implementation of projects of renewable energy generation. All JME operation is outsourced. “But we plan to have our own team so we get a number of projects that justify this initiative,” says the CEO.
An industry trend that can bring more business to the company is the generation of solar energy. According to the CEO, as new generation sources are located in the North and Northeast, the transmission infrastructure investments to exploit this type of energy will continue to be prioritized. “Considering this trend, JMalucelli Energy should continue investing in the best projects of its portfolio in order to maximize the return for its shareholders and ensure a low-risk cash flow and business sustainability in the long term,” he adds.
PROJECTS AND EXPANSION
Reinforcing its commitment to the use of renewable energy, among dozens of projects spread across ten Brazilian states, JME is installing a solar photovoltaic power generation system at the Federal University of Goiás (UFG). The unit is scheduled to come on stream in April 2015. The project, which aims to promote research in the field of photovoltaic generation, is forecast to 17 kilowatts-peak of installed capacity and will supply a third of the (energy) load of the UFG School of Engineering.
In the last three years, JME has invested more than R$ 1 billion and implemented nine projects that pertain to the generation and transmission of energy. Among them, there are three wind parks, one small hydroelectric plant (SHP), four transmission lines, and one hydropower plant. With the exception of the Belo Monte Hydroelectric Power Plant, all other projects are already in commercial operation.
JME has a solid portfolio of projects. Among them, the Queixada SHP, in Goiás, deserves to be highlighted. The plant was constructed by JMalucelli Construction Works and the whole process of development and implementation was managed by the company’s technical team. The CEO is adamant when he says that “Queixada Small Hydroelectric Plant--an SHP of 30 MW and capacity factor of 0.73--is our main asset and, in it, we have 100% participation.” Further, he explains, “The energy supply contracting is also a success, with 80% of generated energy contracted through the 30 year Multi-Annual Plans (MAPs) indexed to the inflation in the regulated market--large distributors.”
JME’s smooth-sailing success does not stop there. During the next five years, JME will continue to increase its portfolio of assets of renewable energy generation through the implementation of development projects. Prosdócimo details the positive forecasts of the company’s growth. “We have eight very promising wind farms, with 200 MW of total installed capacity, which make us ready to participate in future energy auctions in 2015. These energy parks, when contracted, will take between 3 and 5 years to begin to operate. Among our SHP projects, we have three main projects in development that could add another 120 MW within the next five years,” he concludes.
QUALITY AND SAFETY
A good example of the company’s care for the environment is the three wind farms (RDV 1, RDV 3 and MIA 3) that are operating in Rio Grande do Norte. All of them are already installed. Currently, the company monitors the operation and maintenance of three desalination plants in the city of Galinhos, which includes a biweekly analysis of water quality. “In addition, a project has been developed and agreements have been signed with the Galinhos city government for the construction, operation, and maintenance of landfill, sanitation, and water supply facilities in the city,” says Prosdócimo.
Above all, JME, together with the other companies within the group, is currently going through a process of structuring its quality, safety, environment, and occupational health practices. These practices follow important guidelines, such as the integration of safety and occupational health, environmental integration of quality practices, the creation of an annual schedule of processes monitoring visits (to be performed by internal auditors from specific departments), the monitoring of all of the company’s business units, and an ongoing review of existent policies, creation new ones when necessary.
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