Brazilian renewable energy group Renova Energia has filed for bankruptcy protection in local courts from debts that add up to R$3.1bn ($760m) after failing to sell the 730MW Alto Sertão III wind power project to AES Corp’s local unit.

The move is the latest in a three year process in which Renova has gone from being one of the most aggressive bidders in government tenders to a company that is now selling assets to pay down debt.

Although it has already sold most of its wind assets, cash-flow from remaining operational assets – mainly 190MW of small hydros and 430MW of initial stages of Alto Sertão III – are not enough to pay creditors and suppliers as well as complete the project.