Cemig invests BRL 3.8 billion in revitalising its generating fleet

Cemig plans to invest around BRL 3.8 billion by 2030 in refurbishing its generation fleet, within the BRL 44 billion plan for 2026 to 2030, according to Diário do Comércio. Spending ranges from BRL 123 million in 2026 to BRL 1.7 billion in 2030. The largest works are Três Marias and Salto Grande, with studies in 2027 and works from 2028.

The 2022 financial statements of Cemig Geração Três Marias S.A. show how this plant generates revenue: a concession obtained in Auction 12/2015, 70% of the physical guarantee under the quota regime since January 2017, with regulated revenue, and around 30% in the free market, with a term to 2053.

This split defines who absorbs the risk of the refurbishment. In the quota portion, revenue is set by the regulator. In the free portion, the return depends on the contracts Cemig signs. Works scheduled until 2032 leave around two decades of concession to recover the investment.

The scope will come out of the 2027 studies. With spending concentrated in 2029 and 2030, that is when suppliers of equipment and services for hydroelectric plants should expect demand.