Companhia Energética de Minas Gerais – CEMIG (CIG) Unveils $6.3B Modernization Plan to Reinvent Brazil’s Energy Grid

We recently compiled a list of 10 Cheap Utility Stocks to Buy According to Hedge Funds. Companhia Energética de Minas Gerais – CEMIG stands sixth on our list.

Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG), one of Brazil’s largest integrated energy utilities, is advancing a major modernization initiative in 2025 with a record investment of BRL 6.3 billion (approx. $6.3 billion). The program focuses on upgrading infrastructure, expanding renewable energy, and embracing digital transformation to strengthen the company’s role in Brazil’s evolving energy landscape.

Key components of this plan include the deployment of smart meters and Advanced Distribution Management Systems (ADMS) to improve grid efficiency and reliability. These technologies enable real-time monitoring and better control, essential for managing increasing renewable energy integration. Additionally, the company is enhancing grid resilience and decentralizing operations through six newly established regional units to improve customer responsiveness.

 Companhia Energética de Minas Gerais – CEMIG (CIG) Unveils $6.3B Modernization Plan to Reinvent Brazil’s Energy Grid

A utility employee connecting wires at a power station in order to distribute electricity to customers.

Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG) is also investing in digital platforms like SAP S4/HANA to boost operational transparency and service agility. These upgrades support the company’s broader goal of transitioning toward a more sustainable and technology-driven energy model. As one of the cheap utility stocks, the business is launching its first solar energy plants in July 2025, reinforcing its commitment to clean energy development.

While we acknowledge the risk and potential of CIG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CIG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.