Brazil cancels 25 wind, solar power projects at request of firms.

Photo of a wind farm in Brazil

Brazil’s government on Monday cancelled the construction of 25 wind farms and solar parks in the country after companies behind the projects requested to return construction licenses. Following an eight-hour tender, Brazil’s government cancelled PPAs with a capacity of 557.4MW in wind and solar power, equivalent to 13% of the non-performing projects eligible for cancellation, power trading chamber CCEE said in a statement.

Brazil’s power sector has been rattled by a combination of slumping demand, rising construction costs and reduced credit availability as the country has gone through its harshest recession on record.

At the end of the round, companies paid a combined fee of 105.9 million reais ($33.43 million) for the cancellations. Besides the fines, they will be bared for two years from participating in any new round for new projects.

Construction licenses for 16 wind farms and 9 solar parks were scraped.

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

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