Resilience for Serra Da Saudade: Brazil’s Tiniest Town Gains 2-MWh Microgrid

With just over 800 residents, Serra Da Saudade is the smallest municipality in Brazil. But thanks to a new microgrid, it is now one of a handful of cities in the world that can boast having a dual power supply that leverages solar-powered batteries.

Companhia Energética de Minas Gerais S.A. (Cemig), one of Brazil’s largest utilities, launched the 2 MWh system last month to back up the local power grid and improve energy resilience for the small, remote town at the end of the distribution line. It can meet the city’s energy demand for up to 48 hours should the primary grid fail.

Located in the state of Minas Gerais in southeastern Brazil, Serra Da Saudade’s microgrid includes a solar array dedicated to charging the connected battery energy storage system, which will feed the local power grid, providing high-quality, reliable power during outages.

Cemig’s R$7 million (US$1.34 million) investment also saw smart meters installed in homes and businesses and the city’s public lighting system modernized. Both aim to optimize energy efficiency and system automation.

“This will make Serra da Saudade have an extremely reduced chance of experiencing power outages,” Romeu Zema, governor of Minas Gerais, said in a statement. “Cemig has brought very modern technology to the city, and this will soon prove viable for extension to dozens of other municipalities in Minas Gerais.”

The first of many planned autonomous microgrids in Brazil?

While microgrids are gaining popularity in Brazil and across Latin America, this is one of the first to serve as a secondary power source for a municipality. It likely won’t be the last.

Cemig selected Serra da Saudade for this pilot project after conducting a technical and economic analysis comparing the time and cost of the microgrid’s construction with traditional options for improving energy resilience, such as grid reinforcements and new feeder lines.

Cemig’s operations center will monitor the microgrid, and performance data will inform how similar systems are rolled out across the state.

"We are not just bringing development, we are bringing development with innovation, with new solutions, with creative solutions that make a difference for Serra da Saudade and, in the near future, for dozens of other municipalities in Minas Gerais," said Reynaldo Passanezi, president of Cemig.

The utility, which operates hydroelectric, wind and solar plants across Brazil, is planning at least 10 more autonomous microgrids in areas with rugged terrain or extensive networks that make traditional solutions unfeasible or extremely expensive.

Cemig has been under fire in recent years over grid reliability issues across Minas Gerais. In 2024, Brazilian courts ordered the utility to pay fines and develop plans to reduce power outages in at least three cities in the state—Virginópolis, Frutal and Itabira. 

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