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Brazil Regulator Blocks Sale Of Wind Complex By Renova To AES Tiete - Report

Power News - Published on Thu, 06 Jun 2019

Image Source: ET EnergyWorld
Reuters reported that Brazil’s power sector regulator ANEEL rejected the proposed transfer of wind power complex Alto Sertao III from Renova Energia SA to AES Tietê, a 1.34-billion real (USD 346.73 million) deal closed in April. In a meeting of its board, ANEEL directors said the companies failed to show possible gains for the consumer or guarantees for the conclusion of the project.

Renova and AES Tietê were also seeking from ANEEL suspension of some fines related to delays in the complex’s completion.

In a securities filing, Renova Energia said the regulator’s decision only applies to windmills that already had future contracts to sell the energy. Windmills that did not have this contract could still be sold, Renova said.

AES Tietê, which is part of US energy firm AES Corp, said that the 350 million reais phase A of the project, with an installed capacity of 438 MW, was not at risk from the regulator’s decision.

Similarly, both companies said that an option to buy up to 1.1 GW of wind projects under development by AES Tietê, for up to 76 million reais, was not affected by the ruling.

AES Tietê said that “In light of this decision, (AES Tietê) will reassess its interest in the acquisition of Phase B of this project. Phase A and the pipeline were not subject to Aneel’s decision and therefore follow their normal course within the schedule for the completion of the transaction.”

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Posted By : Rabi Wangkhem on Thu, 06 Jun 2019
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