Companhia Energetica de Minas Gerais (Cemig), Brazil’s second-biggest power utility, has signed an agreement to buy a 50% stake in a project to develop 25 wind farms from local renewable energy developer Renova.
The deal came after Cemig exercised an option to participate in the project, tendered by Renova in February.
Under the agreement Cemig will pay R$113 million (US$51 million) for its share of the project in northeastern Brazil, which will total 676 MW of installed capacity, the Belo Horizonte-based firm said in a statement.
The investment agreement is subject to approval by Brazil's antitrust watchdog Cade.
The wind farms are located in Jacobina, about 300km northwest of Bahia state capital Salvador. Renova estimates its turbines will spin more than 50 percent of the time.
Brazil’s government is promoting wind and other renewable energy projects. The country aims to diversify away from hydroelectric plants, which account for 66% of the nation’s installed capacity. Brazil plans to more than double its capacity to generate wind power next year.