June 7, 2018 / 12:27 PM / 4 months ago

CORRECTED-Brazil's Cemig purchases 1.2 gigawatts in energy contracts

(Rewrites to reflect that Cemig itself organized the auction)

SAO PAULO, June 7 (Reuters) - Brazilian state energy firm Cia Energetica de Minas Gerais SA has bought energy contracts from wind and solar parks set to be built in the near future with a total capacity of 1,240 megawatts, it said in a statement on Wednesday.

The contracts will go into effect starting in 2022 and last for a period of 20 years. Cemig, as the company is widely known, had organized an auction, in which private companies competed to provide energy to the state-run firm.

While the financial terms of the contracts were not immediately available, Cemig executives had previously told Reuters this auction was an important re-contracting opportunity for the company.

Some important Cemig energy contracts are set to expire soon after the federal government re-auctioned a series of energy blocks in 2017.

Cemig is controlled by the government of the Brazilian state of Minas Gerais.

Reporting by Gram Slattery; Editing by Bernadette Baum

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