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Climate Action 2010-2011

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SPECIAL FEATURE | Cemig<br />

Clean energy<br />

initiatives<br />

Operating for 58 years in the market, Cemig is one of<br />

the most solid and important groups in the Brazilian<br />

power industry. The parent company of a conglomerate<br />

of 62 companies and 10 consortia, Cemig manages a<br />

portfolio of power generation, power transmission and<br />

electricity distribution assets, in addition to natural gas<br />

distribution and data transmission interests.<br />

Cemig is the largest electricity distribution company in<br />

Brazil – Market share: 12 per cent, and the third largest<br />

power generation and transmission group – Market share:<br />

seven per cent and 10 per cent, respectively. The company’s<br />

long term goal is to attain a 20 per cent market share in<br />

each of the power sectors. Cemig’s shares are traded on<br />

stock exchanges in São Paulo, New York and Madrid.<br />

Cemig is noteworthy for generating its power from<br />

renewable sources. In 2009, 100 per cent of the power<br />

generated was originated from renewable sources: 99 per<br />

cent from hydroelectric plants and one per cent from wind<br />

power and cogeneration plants. The company’s new projects<br />

ensure its growth in terms of power generation utilising<br />

renewable sources, especially hydro, wind and solar.<br />

Focus on the climate<br />

In 2009 Cemig obtained the highest score for <strong>Climate</strong><br />

Strategy from the Dow Jones Sustainability World<br />

Index (DJSI World) in the global utilities sector. Cemig<br />

undertakes specific actions aimed at the development of<br />

Clean Development Mechanism (CDM) projects, energy<br />

efficiency programs, the construction of small hydroelectric<br />

plants and research and development into renewable energy<br />

sources. All the risks and opportunities related to climate<br />

change are listed in the Carbon Disclosure Project (CDP).<br />

CDM projects<br />

These encompass power cogeneration projects using waste<br />

gases generated in the industrial process at a steel mill<br />

that would otherwise be released into the atmosphere.<br />

Other projects identified by Cemig as opportunities<br />

that may fit within the CDM include small hydroelectric<br />

plants and the utilisation of new energy sources, which<br />

are in process of approval and registration.<br />

Energy efficiency<br />

Through its energy efficiency programmes, in 2009<br />

alone, Cemig managed to achieve a reduction in power<br />

consumption of 27,765 MWh/year, which is enough power<br />

to supply approximately 19,300 Brazilian residences.<br />

Of special note is the Conviver Project, begun in 2006,<br />

which is aimed at providing information to low income<br />

consumers about energy efficiency measures. In 2009, the<br />

project produced power savings of 3,476 MWh/year<br />

through the donation of more efficient equipment, including<br />

light bulbs, shower heads and refrigerators. In 2009, the<br />

projects run by Efficientia, a company in the Cemig group,<br />

made possible power savings of 24,029 MWh/year at the<br />

facilities of industrial clients, which corresponds to the<br />

annual consumption of approximately 16,700 residences.<br />

Small hydroelectric plants<br />

Through the Minas PCH Program, Cemig has been<br />

expanding its power generation system through the<br />

construction and installation of small hydroelectric plants<br />

in partnership with other companies in the private sector.<br />

Wind power<br />

Cemig was the first Brazilian electric utility to operate a<br />

wind farm connected to its electric system, the Morro do<br />

Camelinho Wind Farm, in 1994. In 2009 Cemig acquired a<br />

49 per cent equity stake in three wind farms in the northeast<br />

region of the country, totaling 99.6 MW. The company has<br />

been progressing in this area through the identification of<br />

other promising sites for the installation of wind generators.<br />

Solar energy<br />

Cemig has installed photovoltaic systems at many<br />

residences in remote regions of the state and solar<br />

collectors at low income housing projects to heat water,<br />

which is producing a reduction in energy consumption of<br />

roughly 30 per cent and greater efficiency in its usage.<br />

Development of new energy sources<br />

Cemig has invested in research and development of new<br />

energy sources with projects related to biomass, biodiesel,<br />

hydrogen and fuel cells. In 2009, Cemig tested and<br />

incorporated into its fleet four automobiles powered by<br />

electric energy, giving continuity to this research project.<br />

Tel: +55 313 506 4020 Website: www.cemig.com.br<br />

www.climateactionprogramme.org | 59 |

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