Brazilian renewables developer CPFL Energias Renováveis S.A. (CPFL) lost about US$53 million in 2014, in part, because of increased spending to offset its loss of energy produced from its hydroelectric facilities.
CPFL develops, builds, and operates small and medium scale electrical power plants primarily in Brazil that include approximately 38 small-scale hydroelectric plants. In total, CPFL hydropower facility reservoirs were reduced to 19% of total capacity because of the ongoing drought affecting much of Brazil. Catchment levels forced the company to curtail and in some cases stop generating hydroelectric power.
In order to meet its contractual obligations to supply power, published reports indicate CPFL purchased electricity at higher than normal prices on Brazil’s spot market. This resulted in higher company expenditures for power compared to 2013.
“It's been a challenging year for the power sector due to the hydrological conditions and regulatory issues,” said CEO André Dorf during a conference call with local news agencies.
He went on to say, “But the outlook for renewable power in the country remains positive.”