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.
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."
The value of the contract was not disclosed.
Subscribe to Power Engineering magazine