Companhia Energetica de Minas Gerais, the Brazilian state controlled utility, may invest in Renova Energia SA to consolidate its foothold in the nation’s expanding market for wind power.
Renova in the filing with Brazil’s stock regulator, after Valor Economico SA published a story said that talks with Cemig’s Light SA unit are ongoing and confidential. Light would acquire a 50% stake in the Sao Paulo-based renewable energy developer.
At least two other electricity producers in Brazil are pursuing acquisitions of clean energy developers to position themselves for an anticipated boom in wind farms.
Mr Ricardo Correa an analyst at Rio de Janeiro-based brokerage Ativa SA Corretora said that “Utilities want to enter wind now so they have the know- how and scale” to “be more aggressive in future auctions,” for power contracts.”
According to the Sao Paulo based electricity trading board Camara de Comercializacao de Energia Eletrica, known as CCEE, Renova was awarded contracts for 14 wind farms in a government organized auction for wind projects in 2009 and another six in an auction in 2010. The wind farms have a combined capacity of 423 megawatts.
Renova also owns three small hydroelectric plants with a combined capacity of 41.8 MW in Bahia. Cemig has minority stakes in three wind farms in Ceara, in the country’s northeast. Renova rose 9.7% to BRR 34.15 in Sao Paulo trading this week.
Sourced from Bloomberg
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