Cemig approved to renew Sá Carvalho hydropower plant concession for 30 years

en.Wedoany.com Reported - On August 28, Brazil's Ministry of Mines and Energy decided to extend the concession for Cemig's Sá Carvalho hydropower plant by 30 years, with the new term starting from August 31, 2026. Cemig has 210 days upon receiving the signing notice to evaluate the renewal conditions and sign the supplementary concession agreement; the renewal process has not yet been finalized with the formal signing.

The Sá Carvalho hydropower plant is located on the Piracicaba River in the municipality of Antônio Dias, Minas Gerais state. It began operations in 1951 and is equipped with 4 generating units, with a total installed capacity of 78 MW and a certified physical guarantee of 56.1 average MW. The project is operated by Sá Carvalho company, controlled by Cemig's generation and transmission subsidiary, and the original concession was set to expire in August 2026.

Cemig submitted its intention to renew the concession through the transfer of equity control in February 2023, and in July of the same year, pursuant to Brazilian Federal Law No. 12,783/2013, it again applied to continue operations under the physical guarantee quota mechanism. This decision confirms a 30-year renewal term, but the project's subsequent operating conditions, revenue mechanisms, and related obligations remain subject to the supplementary agreement.

Sá Carvalho is the first of Cemig's three large hydropower concessions nearing expiration to receive a renewal decision. The other two are the Theodomiro Carneiro Santiago hydropower plant with an installed capacity of 1,192 MW and the Nova Ponte hydropower plant with an installed capacity of 510 MW, whose existing concessions expire in May and August 2027, respectively. The three plants together have a combined installed capacity of 1,780 MW, accounting for approximately 55% of Cemig's own generation capacity, and contributed a combined EBITDA of approximately R$ 900 million in 2025.