Brazil revokes solar power plant authorizations

Brazil’s electric power watchdog Aneel has revoked the authorization of 15 solar power generation plants and recommended the termination of an energy transmission concession contract.

The photovoltaic plants – Altitude 1-15 – with installed capacity of 657MW, were located in Piauí state. The projects were expected to begin commercial operation by January 31, 2023, but construction has been halted for over three years, with only 0.01% of work completed.

According to Aneel, the status reflects construction stagnation and project infeasibility.

Aneel issued formal notices in 2024, but Riacho da Serra Energia, which is responsible for the projects, did not respond.

Simultaneously, Aneel recommended that the mines and energy ministry terminate five concession contracts awarded to MEZ Energia e Participações in transmission auctions held in 2020 and 2021.

Violations of the contract deadlines were identified, including poor progress in the implementation schedule due to construction delays and postponed commissioning.

The project aimed to strengthen the 345kV connection between the Norte and Miguel Reale substations, improving system reliability in metropolitan São Paulo.

“This initiative is crucial to meet growing demand in the north, south, and east zones of the capital, as well as the ABC [industrial] region. Failure to implement the project could lead to overloads and even power outages,” Aneel said in a press release.