Utility Chesf faces $182m fine for Brazil transmission delays

Power lines in São Paulo state

The Brazilian electricity regulatory agency, Aneel, will fine state utility Chesf R$370m ($182m) for damages resulting from delays in building wind farm transmission lines and substations.

The Acaraú 2, Igaporã and João Camara ICGs, as the connection points are known, should have connected 636MW of wind capacity in July, but are not expected to be ready until September 2013.

Another ICG being built by Chesf, João Camara 3, which was expected to be ready by September 2013, will not be completed until 2015, Recharge has learned.

Otavio Silveira, president of Galvão Energia, a company affected by the delay to João Camara 3, says developers that complete projects on time will receive revenues as per their federal contracts.

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