Cemig Abdicates Investments Outside Minas Gerais and Focuses on Business in the Minas Gerais Region

Written by Roberta Souza

Published on 22/08/2022 at 21:40

Foto: reprodução pixabay.com

Seja o primeiro a reagir!

Cemig, Which Has the Largest Investment Program in History, Has Stopped Investing in Businesses Outside the Territory of Minas Gerais

After initiating an expansion movement beyond the borders of Minas Gerais in the 1990s, Cemig has returned to focus within the state. The company, which was founded in 1952, is halting investments in businesses outside the state and betting on the Minas Gerais territory. Currently, the electric utility company has the largest investment program in history, totaling R$ 22.5 billion until 2025. “We want to be a driver of growth for Minas Gerais again,” states the company’s president, Reynaldo Passanezi.

Managing Cemig since 2020, Reynaldo has made extensive adjustments to the company’s accounts and structures to resume the investment process in Minas Gerais. The initial point was to define three pillars: being efficient, fulfilling the dividend policy, and divesting from assets outside the company’s strategy. The executive states that between 2009 and 2018, Cemig spent R$ 8 billion on operational expenses above the regulatory limit recognized by the agency in the tariff. In 2021, this amount was R$ 448 million below the limit.

Another initiative to resume the company’s investments in Minas Gerais was to consolidate several Cemig units into a single building, which reduced expenses by R$ 40 million. The company, which operates in generation, distribution, transmission, and natural gas, also owned two planes with three pilots for exclusive use by the board and a hangar in Pampulha that cost R$ 1 million per year.

ARTICLE CONTINUES BELOW

New Strategies of Cemig

Now Cemig intends to focus on opportunities within Minas Gerais. The strategy now is to divest from minority businesses outside Minas Gerais that have not succeeded. The company has transferred, for example, the companies Renova and Light. However, there are still other companies on Passanezi’s list, such as holdings in the Belo Monte (PA) and Santo Antônio (RO) hydroelectric plants, in addition to Taesa (RJ).

According to Passanezi, between 2009 and 2018, minority holdings in these ventures totaled R$ 19 billion. On average, this amount corresponds to a loss of R$ 11 billion, as Cemig’s stake in these businesses is currently worth R$ 8 billion.

In investments, one of the main initiatives is the construction of 200 new substations in the state of Minas Gerais, increasing the number of structures from 415 to 615 units. By reinforcing the grid, the goal is to attract new industries to Minas Gerais.

In energy generation, investments are expected to total approximately R$ 5 billion for 1.5 GW of capacity in renewable sources, such as solar and wind energy. In distributed generation, through solar panels on residences, R$ 1.5 billion will be invested.

Cemig’s investments are expected to be made with cash or funds acquired from asset sales. Just from Light and Renova, the state-owned company raised R$ 2.5 billion. Except for renewable energies, which can be established in the Northeast due to the region’s great potential, other Cemig projects are expected to occur in Minas Gerais.

Cemig Abdicates Investments Outside Minas Gerais and Focuses on Business in the Minas Gerais Region

Cemig, Which Has the Largest Investment Program in History, Has Stopped Investing in Businesses Outside the Territory of Minas Gerais

New Strategies of Cemig

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

With 7.4 trillion tons of artificial snow pumped in 10 years, an extreme operation could stabilize the West Antarctic ice sheet and prevent a sea level rise of more than 3 meters, but it would require snow cannons, ocean water, and energy on an almost industrial scale at the end of the world.

Peru built a tunnel at an altitude of 4,738 meters cutting through the Andes Mountains, and the road leading to it reaches 4,818 meters, making it the highest paved road in the entire world.

The construction of houses with cement wood blocks is surprising workers; it uses a direct fitting system without complications and can make the work up to 100 times faster than the conventional method.

The government announces a new clinical research program and outlines how the amount of R$120 million in investments will be distributed among hospitals and universities of the SUS.

Cities in the United States are slowly sinking, and the reason behind the ground subsidence may surprise even experts as buildings, streets, and entire neighborhoods begin to give way without visible signs.

Two restaurants in Brazil achieve the highest rating in the Michelin Guide and elevate the country to a new level of fine dining.

China inaugurates a new era by signing a $5.1 billion project to expand one of the largest gas fields on the planet, adding 10 billion m³ per year and reinforcing an energy mechanism that already moves 30 billion m³ annually towards its market.

Cemig Abdicates Investments Outside Minas Gerais and Focuses on Business in the Minas Gerais Region

Cemig, Which Has the Largest Investment Program in History, Has Stopped Investing in Businesses Outside the Territory of Minas Gerais

New Strategies of Cemig

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

With 7.4 trillion tons of artificial snow pumped in 10 years, an extreme operation could stabilize the West Antarctic ice sheet and prevent a sea level rise of more than 3 meters, but it would require snow cannons, ocean water, and energy on an almost industrial scale at the end of the world.

Peru built a tunnel at an altitude of 4,738 meters cutting through the Andes Mountains, and the road leading to it reaches 4,818 meters, making it the highest paved road in the entire world.

With 5.6 trillion tons of natural hydrogen beneath the Earth, 26 times the known oil and more energy than all the natural gas in the world, the new gold rush is already mobilizing Bill Gates, Amazon, and Petrobras.

U.S. researchers publish the first national map of natural hydrogen, placing 30 states on the radar and changing what was known about clean energy in the American underground.

Solar-powered ice factory in the Amazon that eliminated a 5-hour trip to Manaus, prevents the loss of up to two-thirds of the fish, and now ensures income for more than 30 riverside families.

Every time a river flows into the sea, an amount of energy equivalent to a 120-meter waterfall is silently wasted, but Japan has just inaugurated the world’s first power plant that captures this waste and transforms it into electricity 24 hours a day without sun, wind, or fuel.

Silicon Valley bets on a 100-hour battery that uses carbon and oxygen to store renewable energy for days and could turn a little-known chemical system into an alternative to critical metal batteries to tackle prolonged blackouts.

The construction of houses with cement wood blocks is surprising workers; it uses a direct fitting system without complications and can make the work up to 100 times faster than the conventional method.

The government announces a new clinical research program and outlines how the amount of R$120 million in investments will be distributed among hospitals and universities of the SUS.

Cities in the United States are slowly sinking, and the reason behind the ground subsidence may surprise even experts as buildings, streets, and entire neighborhoods begin to give way without visible signs.

Two restaurants in Brazil achieve the highest rating in the Michelin Guide and elevate the country to a new level of fine dining.

China inaugurates a new era by signing a $5.1 billion project to expand one of the largest gas fields on the planet, adding 10 billion m³ per year and reinforcing an energy mechanism that already moves 30 billion m³ annually towards its market.