The generation of solar and wind power is one of Cemig's main objectives, an area popularly known as the "greenfield"

The Brazilian cemig  (Companhia Energética de Minas Gerais) plans to invest BRL 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 (2,32 billion reais) will be allocated to the electricity distribution segment. The remainder will be invested in transmission (276 million reais), generation (238 million reais) and acquisitions. 

• Wind energy generates an impact of BRL 260 billion in the Brazilian economy since 2011
• Cemig acquires seven photovoltaic plants for solar energy projects
• CEMIG creates a solar energy subscription system so that consumers have discounts on their electricity bills
• More solar energy for the people: Cemig, a state-owned company from Minas Gerais, intends to double its solar generation capacity with new plants
• Paraná announces infrastructure investment plan of US$ 760 million

One of the goals of the current government is to invest in wind and solar power generation projects. In September 2020, the state-owned mining company launched a public call for the acquisition of enterprises in an advanced stage of development. 

“Our focus is greenfield [projects], taking advantage of our technical and commercialization capacity, but that doesn't mean we can't look at mergers and acquisitions,” said Cemig's president, Reynaldo Passanezi Filho, to the webcast. 

The commercialization director of the electric power company, Dimas Costa, said that a significant part of the generation projects to be acquired will be directed to self-production. 

“There is great demand from our customers for this”, said the executive, noting that Cemig's energy price target is around 115 reais / MWh and 135 reais / MWh for wind and solar energy, respectively. 

divestments

About two months after the sale of its stake in Light, based in Rio de Janeiro, Cemig announced that it had begun to study 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 we want to have control [of the projects]”, said Passanezi Filho. 

Cemig's Investment Results in 2020

Cemig recorded net income of 1,33 billion reais in the fourth quarter of 2020, an increase of 136% compared to the previous year. For the full year, its net income was BRL 2,86 billion, down 10,3% from 2019. 

Net income totaled R$6,87 billion for the fourth quarter (+5,8% year-on-year) and R$25,2 billion for the year (-1% year-on-year).