Vestas cancels 254 MW Brazil wind energy deal

Wind turbine manufacturer Vestas has canceled a 254 MW supply deal with CPFL Renováveis, raising fresh concerns about regulatory uncertainty in Brazil, according to Business News America.

The decision follows changes to Brazilian legislation after the contract was signed in 2011, Vestas said in a statement on Friday.

The Danish firm had agreed to deliver 127 of its V100-model wind turbines to CPFL's Campos dos Ventos and São Benedito projects in Brazil's northeast.

It is understood the issue related to new local content rules for developers seeking loans from Brazil's national development bank BNDES.

"As CPFL and Vestas have been unable to agree on the consequences of those specific legislative changes, [we] have amicably agreed to the cancellation of the project," the statement said.

The value of the contract was not disclosed.

In a report released last month, credit ratings agency Moody's said investors in Brazil were wary of "increased government intervention, unclear regulations and inconsistent application of rules."

The agency added that long-term financing agreements involving private firms were "key to closing Brazil's infrastructure gap."

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs