Brazil slashes contract terms for Proinfa project laggards

Turbines at Canoa Quebrada have been spinning in Brazil for years, but Aneel says delayed Proinfa projects will lose revenue

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By Christiana Sciaudone Rio de Janeiro

 Wednesday, June 06 2012

Updated: Sunday, November 25 2012

Wind farms contracted under Brazil’s Proinfa renewables support scheme that came on line in 2011 will have five years of revenue slashed from their lucrative 20-year power contracts after a ruling by electricity regulator Aneel.

Developers that secured contracts under Proinfa – Brazil’s original alternative-energy incentive programme, which was set up 10 years ago – were supposed to finish their projects in 2006.

The Proinfa deadline has been extended several times – the last time at the end of 2010 by a presidential decree. But this week Aneel lost patience and ruled that contracts for projects that started operating in 2011 effectively began in 2006, and won’t enjoy the full two decades of payments.

The big loser is power group Impsa, whose subsidiary Energimp brought 222MW…

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