Cemig and the Government of Minas Gerais Invest R$ 5 Billion in the Construction of 200 New Power Substations

Written by Roberta Souza

Published on 24/09/2021 at 14:24

Subestações de energia/ Fonte: Revista O Empreiteiro

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Cemig In Partnership With The Government Of Minas Gerais Launched The Mais Energia Program, Which Involves The Construction Of Energy Distribution Substations

Yesterday, Thursday (09/23), the governor of Minas Gerais, Romeu Zema, and the CEO of Cemig, Reynaldo Passanezi Filho, launched the Mais Energia program, which involves the construction of 200 energy distribution substations in various regions of the state by 2027. R$ 5 billion will be invested in the construction of new facilities and high-voltage lines to connect them to the distribution network, as well as reinforcement works on medium-voltage networks in the company’s concession area. Also read this news: Even Without Generating Energy, Mining Company Vale Has Already Received Over R$ 500 Million For A Buried Plant In Minas Gerais

The Mais Energia Program, By Cemig And The Government Of Minas Gerais

The launch took place in Governador Valadares, in the Vale do Rio Doce, where the new Governador Valadares 5 Substation is being built, an important reinforcement project for the region’s electrical system that will be delivered in early 2022 and will benefit 100,000 Cemig customers.

The deliveries will ensure the expansion of energy supply for new loads and improve the reliability of the electrical system for the population, enabling job and income generation in all regions of Minas Gerais. R$ 5 billion will be invested in the construction of new facilities and high-voltage lines to connect them to the distribution network, in addition to reinforcement works on medium-voltage networks in the company’s concession area. This action is part of the largest investment plan in the history of Cemig, which foresees R$ 22.5 billion invested in the coming years.

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Correction of Managements And Strategies

According to Governor Romeu Zema, the program is a way to correct misguided managements and strategies that were adopted in the past. “We know that in the last 15, 20 years, Cemig’s investments, unfortunately and incorrectly, were directed to Rio de Janeiro (Light), Bahia (Renova), and Amazonas (Belo Monte and Santo Antônio), and our transmission and distribution park was completely compromised and outdated,” Zema stated.

The Mais Energia program will considerably increase the number of substations in the state, from the current 415 to 615 units by 2027. Currently, 30% of Cemig’s substations have load restrictions. With the new substations, it is anticipated that this number will be zeroed by 2027, eliminating the suppressed demand for energy in Minas Gerais. This is because approximately 5,000 MVA (Mega VoltAmpere) of power will be injected into the electrical system, more than 50% of the current installed capacity.

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Cemig SIM, a subsidiary of the Cemig Group focused on renewable energy, will receive R$ 1 billion in investments from its parent company by 2025, to invest in projects related to solar energy farms. According to the company, the investment aims to increase its market share in shared distributed generation from the current 10% to 30% by the end of 2025. The company, which currently has 11 solar farms in operation, intends to inaugurate an additional seven in the first half of this year 2021.

João Paulo Campos, director of business development and finance at Cemig SIM, states that Cemig’s strategic planning foresees an investment of R$ 1 billion in the distributed generation business, which occurs through Cemig SIM. However, they will seek an optimal capital structure, i.e., it will not necessarily be with its own resources, and, according to the executive, some form of leverage can be made to generate returns and optimize results in the solar energy sector.

Cemig and the Government of Minas Gerais Invest R$ 5 Billion in the Construction of 200 New Power Substations

Cemig In Partnership With The Government Of Minas Gerais Launched The Mais Energia Program, Which Involves The Construction Of Energy Distribution Substations

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Cemig and the Government of Minas Gerais Invest R$ 5 Billion in the Construction of 200 New Power Substations

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