The investment is being made as part of the company’s strategy to focus on wind power technology, along with other utilities, including CPFL Energia and Tractebel Energia.
Cemig is expected to be a part of a controlling group, along with Light Energia and RR Participacoes that will hold 51% stake in Renova Energia, following the completion of the agreement.
Commenting on the transaction, Caixa Geral de Depositos analyst Vicente Koki was quoted by the Bloomberg as saying that the Brazilian utilities are planning to focus on wind power technology, which is expected to complement hydroelectric projects in the country.
The wind power facilities are expected to cater to the electricity needs of the country, during the dry season, added Koki.
In addition, Cemig and Renova Energia will form a new company called Chipley SP Participacoes that will inherit a stake, inwhich Cemig has agreed to take in the hydroelectric dam developer Brasil PCH from Petroleo Brasileiro.
