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Climate Action 2010-2011

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SPECIAL FEATURE | Cemig Clean energy initiatives Operating for 58 years in the market, Cemig is one of the most solid and important groups in the Brazilian power industry. The parent company of a conglomerate of 62 companies and 10 consortia, Cemig manages a portfolio of power generation, power transmission and electricity distribution assets, in addition to natural gas distribution and data transmission interests. Cemig is the largest electricity distribution company in Brazil – Market share: 12 per cent, and the third largest power generation and transmission group – Market share: seven per cent and 10 per cent, respectively. The company’s long term goal is to attain a 20 per cent market share in each of the power sectors. Cemig’s shares are traded on stock exchanges in São Paulo, New York and Madrid. Cemig is noteworthy for generating its power from renewable sources. In 2009, 100 per cent of the power generated was originated from renewable sources: 99 per cent from hydroelectric plants and one per cent from wind power and cogeneration plants. The company’s new projects ensure its growth in terms of power generation utilising renewable sources, especially hydro, wind and solar. Focus on the climate In 2009 Cemig obtained the highest score for Climate Strategy from the Dow Jones Sustainability World Index (DJSI World) in the global utilities sector. Cemig undertakes specific actions aimed at the development of Clean Development Mechanism (CDM) projects, energy efficiency programs, the construction of small hydroelectric plants and research and development into renewable energy sources. All the risks and opportunities related to climate change are listed in the Carbon Disclosure Project (CDP). CDM projects These encompass power cogeneration projects using waste gases generated in the industrial process at a steel mill that would otherwise be released into the atmosphere. Other projects identified by Cemig as opportunities that may fit within the CDM include small hydroelectric plants and the utilisation of new energy sources, which are in process of approval and registration. Energy efficiency Through its energy efficiency programmes, in 2009 alone, Cemig managed to achieve a reduction in power consumption of 27,765 MWh/year, which is enough power to supply approximately 19,300 Brazilian residences. Of special note is the Conviver Project, begun in 2006, which is aimed at providing information to low income consumers about energy efficiency measures. In 2009, the project produced power savings of 3,476 MWh/year through the donation of more efficient equipment, including light bulbs, shower heads and refrigerators. In 2009, the projects run by Efficientia, a company in the Cemig group, made possible power savings of 24,029 MWh/year at the facilities of industrial clients, which corresponds to the annual consumption of approximately 16,700 residences. Small hydroelectric plants Through the Minas PCH Program, Cemig has been expanding its power generation system through the construction and installation of small hydroelectric plants in partnership with other companies in the private sector. Wind power Cemig was the first Brazilian electric utility to operate a wind farm connected to its electric system, the Morro do Camelinho Wind Farm, in 1994. In 2009 Cemig acquired a 49 per cent equity stake in three wind farms in the northeast region of the country, totaling 99.6 MW. The company has been progressing in this area through the identification of other promising sites for the installation of wind generators. Solar energy Cemig has installed photovoltaic systems at many residences in remote regions of the state and solar collectors at low income housing projects to heat water, which is producing a reduction in energy consumption of roughly 30 per cent and greater efficiency in its usage. Development of new energy sources Cemig has invested in research and development of new energy sources with projects related to biomass, biodiesel, hydrogen and fuel cells. In 2009, Cemig tested and incorporated into its fleet four automobiles powered by electric energy, giving continuity to this research project. Tel: +55 313 506 4020 Website: www.cemig.com.br www.climateactionprogramme.org | 59 |