Brazilian regulator urges cancellation of divisive hydro project

Brazil’s energy regulator Aneel has decided in favour of the cancellation of the long-running concession for the Couto Magalhaes hydroelectric facility.

Its decision follows a petition by the project's consortium, comprising local power holding company Rede Energia and Brazilian utility EDP no Brasil.

The plant was due to be built on the Araguaia River, located on the border between Goias and Mato Grosso states, with an installed capacity of 150 MW.

Operations were originally planned to commence in April 2007. However, the project faced strong opposition from local environmentalists, and failed to obtain the respective installation licenses.

Although Aneel has no power to revoke the concession it will recommend that the Ministry of Mines and Energy does so.

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