Chesf

The story of the Companhia Hidro Elétrica do São Francisco, or Chesf, begins not with a startup, but with a national vision for Brazil's Northeast. The idea was championed by Apolônio Sales, then Minister of Agriculture, and brought into existence by a decree from President Getúlio Vargas on October 3, 1945. However, political shifts delayed its implementation. It wasn't until March 15, 1948, under President Eurico Gaspar Dutra, that the company was formally established. The company's core mission was to harness the power of the São Francisco River to generate, transmit, and sell electricity, aiming to spur the social and economic development of the region. Its first power plant became operational in January 1955, an event that brought electricity to many households for the first time. Over the decades, Chesf grew to operate numerous hydroelectric plants and a vast network of transmission lines, becoming a subsidiary of the state-controlled Eletrobras. A significant turning point in Chesf's journey came with the privatization of its parent company, Eletrobras. In 2022, the Brazilian government reduced its stake in Eletrobras, transitioning it from a state-owned enterprise to a corporation with no single controlling shareholder. As a key subsidiary, Chesf was part of this major shift, moving from a government-controlled entity to a privatized company, a move that sparked debate about the future of energy prices and regional development.