Sept 10 (Reuters) – Brazil’s state-controlled electric utility Cemig plans to use its experience in hydropower to invest in clean energy technologies that could boost the country’s electricity grid, CEO Reynaldo Passanezi Filho told Reuters.
Cemig is executing a nearly 40 billion reais ($7.4 billion) investment plan from 2025 through 2029, prioritizing power distribution while gradually shifting from network expansion to digitalization in an effort to improve the consumer experience.
With the distribution business planning well underway, the firm is now focusing on sector innovations, particularly energy storage technologies seen as crucial for preventing blackouts amid intermittent wind and solar generation.
Cemig will use its “enormous accumulated knowledge in hydroelectric power” to advance projects like pumped storage plants and eventually participate in power capacity auctions, Passanezi said.
The company is already testing batteries connected to its distributed solar generation plants.
Cemig continues pursuing sales of non-strategic assets including stakes in Taesa, the Belo Monte hydroelectric plant, and gas distributor Gasmig, Passanezi said.
However, the company faces political and regulatory hurdles, including uncertainties on debt repayment tied to Cemig’s controlling shareholder, the state of Minas Gerais.
($1 = 5.4036 reais)
Brazil Energy Insight 
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