Portuguese 
English 
Spanish 
2 min of reading 
The Generation of Solar and Wind Power Is One of Cemig’s Main Objectives, An Area Commonly Known as “Greenfield”
The Brazilian Cemig (Companhia Energética de Minas Gerais) plans to invest R$ 3.1 billion (US$ 540 million) in 2021, an increase of 62.4% compared to last year, the company announced on Monday during a webcast for investors. As in 2020, most of the capex (R$ 2.32 billion) will be allocated to the electricity distribution segment. The remainder will be invested in transmission (R$ 276 million), generation (R$ 238 million), and acquisitions.
One of the current government’s goals is to invest in wind and solar energy generation projects. In September 2020, the state-run Minas Gerais company launched a public call for acquiring advanced-stage projects.
“Our focus is on greenfield [projects], leveraging our technical and marketing capabilities, but that doesn’t mean we can’t look at mergers and acquisitions,” said Cemig’s president, Reynaldo Passanezi Filho, during the webcast.
-
Havan, the retailer from Santa Catarina owned by Luciano Hang, will offer a contract of R$ 40,000 to whoever produces the best video in tribute to the company’s 40th anniversary, in a national influencer contest open to anyone with a profile on Instagram or TikTok.
-
After criticizing millions who receive Bolsa Família, Luciano Hang is considering opening stores in Paraguay while predicting a ‘collapse’ in Brazil with the end of the 6×1 work schedule and the conviction that ‘only a disaster’ would save the country; the owner of Havan talks about an explosion in inflation, a cost increase of up to 20%, and risks for thousands of Brazilian companies.
-
Giant Serie A club of the Brasileirão undergoes mass layoffs, putting up to 90 people out on the street and promoting a “silent reorganization” after the arrival of the SAF, affecting strategic sectors and causing a strong atmosphere of tension behind the scenes of Brazilian football.
-
China found a loophole and is entering Europe through the back door by setting up an army of factories for batteries, tires, and auto parts on the other side of the Strait of Gibraltar, in Morocco, which bypass the tariffs of up to 45% that Brussels established precisely to block Chinese electric cars.
The company’s marketing director, Dimas Costa, stated that a significant portion of the generation projects to be acquired will be directed toward self-production.
“There is a great demand from our clients for this,” said the executive, highlighting that Cemig’s energy price target is around R$ 115/MWh and R$ 135/MWh for wind and solar energy, respectively.
Divestitures
About two months after selling its stake in Light, headquartered in Rio de Janeiro, Cemig announced that it had begun studying the divestment of Transmissora Aliança de Energia Elétrica (Taesa).
“It is very important for Cemig to focus on the businesses it knows best. We are going back to basics and want to have control [over the projects],” said Passanezi Filho.
Results of Cemig’s Investments in 2020
Cemig reported a net income of R$ 1.33 billion in the fourth quarter of 2020, a 136% increase compared to the previous year. For the entire year, its net income was R$ 2.86 billion, a decrease of 10.3% compared to 2019.
Net revenue totaled R$ 6.87 billion in the fourth quarter (+5.8% year-on-year) and R$ 25.2 billion for the year (-1% year-on-year).
Be the first to react!