Brazil's Cemig plans on leveraging hydroelectric expertise to build new power plants

Reynaldo Passanezi Filho, CEO of Brazil's Cemig state-controlled electricity utility, said that Cemig will use its hydropower experience to invest in clean technologies to boost the country's grid.

Cemig has a plan to invest nearly 40 billion reais (7,4 billion dollars) from 2025 to 2029. The company prioritizes power distribution and gradually shifts from network expansion to digitization in order to improve consumer experience.

The firm has already begun planning its distribution business and is now focusing more on innovations in the sector, notably energy storage technologies, which are seen as essential for preventing blackouts due to intermittent wind and solar power generation.

Cemig's "enormous knowledge" in hydroelectric energy will be used to advance projects such as pumped storage and participate in future power capacity auctions.

Batteries connected to the company's distributed solar power plants are already being tested.

Cemig is continuing to pursue the sale of non-strategic asset, including stakes in Taesa and the Belo Monte Hydroelectric Plant, as well as gas distributor Gasmig.

The company is facing political and regulatory obstacles, including uncertainty over debt repayment due to the controlling shareholder of Cemig, the state Minas Gerais. ($1 = 5,4036 reais). (Reporting Leticia fucuchima, Writing by Isabel Teles, Editing by Chris Reese).

(source: Reuters)