Brazil cancels 25 green projects

Brazil has cancelled 25 renewable projects after developers requested to return construction licences. In total, 16 wind farms and nine solar parks were scrapped as financially struggling firms were allowed […]

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By Jonny Bairstow

Brazil has cancelled 25 renewable projects after developers requested to return construction licences.

In total, 16 wind farms and nine solar parks were scrapped as financially struggling firms were allowed to step back from their plans by paying a combined total of $33.4 million (£26m) in fees.

The move marks the country’s first ‘cancellation round’ for power projects following a recession causing falling demand, rising construction costs and reduced credit availability.

Many of the firms originally awarded the licences said they no longer had enough money to build them – they have now been barred from participating in any rounds for new projects within the next two years.

New rounds are scheduled for December. These are the first since 2015, as the government sees the beginning of a recovery in power demand.

Brazil has recently opened up nearly a third of a vast national reserve in the Amazon to mining.