Brazil's Cemig completes Retiro Baixo acquisition

Brazil's power holding Cemig completed, on 5 Sep. 2014 the acquisition of a 49.9% stake in the 82 MW Retiro Baixo hydroelectric power plant (HPP) in Minas Gerais state, Brazil.

The R$156.4 million (US$68.2 million) deal with Arcadis Logus Energia has been achieved by Cemig´s transmission subsidiary Cemig GT. The other shareholder of the plant is Furnas, a Brazilian federal power utility which hold the remaining 50.1% stake.

This transaction was announced on April 30, 2014. Conditions outlined by sector regulator Aneel and antitrust watchdog Cade had been met.

Retiro Baixo is located on the Paraopeba river in Curvelo and Pompeu municipalities. The work commenced in March of 2007. The hydropower facility started commercial operations in mid 2010.

The Retiro Baixo power plant is linked to the National Interconnected System (SIN) by a three-phase transmission line with a length of approximately 43 km, operating at a voltage of 138 kV and interconnecting the substation of the power plant with the Curvelo II substation.

Cemig, which is based in the southeastern city of Belo Horizonte, owns generation, transmission and distribution assets in 11 Brazilian states.