Cemig to buy 16 MWp of DG solar farms in Brazil

Brazilian energy solutions company Cemig SIM has signed an agreement to acquire 16.2 MWp of solar farms that will operate on a distributed generation (DG) basis in the state of Minas Gerais.

The transaction will see Cemig SIM acquire a 100% stake in special purpose vehicles that own the solar farms. The selling parties are Brazilian firm Genesys Participacao Societaria Ltda and businessman Antonio Carlos Torres.

Cemig SIM will pay around BRL 100 million (USD 19m/EUR 18.1m) for three solar plants and disburse the money as they come online, the buyer's parent, Brazilian utility Cia Energetica de Minas Gerais SA - Cemig (BVMF:CMIG4), said on Wednesday.

The portfolio consists of the Prudente Morais solar farm, which is expected to start operations in July, Montes Claros will follow in September, and Jequitiba, set to go online in February 2023.

Cemig SIM expects the plants to be capable of powering some 2,500 customers in the low voltage commercial and industrial market.

The closing is subject to conditions typical for these kind of transactions, Cemig added.

(BRL 1.0 = USD 0.191/EUR 0.181)

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