Brazil's Auren Energia cancels solar power projects in Piauí state

Brazil’s Auren Energia requested that the local electric power watchdog Aneel revoke the authorization concessions for eight photovoltaic solar plants (UFVs) in the state of Piauí. 

The request refers to the Sol do Araripe PV plants, Sol do Piauí II, Sol do Piauí III, Hélios 1, Hélios 2, Hélios 5, Hélios 6 and Hélios 7.

The company attributes the decision to the oversupply of energy in the National Interconnected System (SIN), resulting from the accelerated expansion of installed power generation capacity in recent years, combined with the low growth of the organic load demand. 

According to Auren, this mismatch between supply and consumption has reduced the economic space for the inclusion of new generation projects, especially those that are not yet contracted or not connected to the transmission grid.

The company also argued that the rapid expansion of distributed generation has intensified operational challenges and contributed to the reduction of the economic and physical space for centralized generation, resulting, for example, in a higher incidence of curtailment, especially in regions already characterized by flow constraints and a high simultaneity factor among renewable sources. 

Many companies, in addition to Auren, have already requested the cancellation of authorization concessions from Aneel, citing, in addition to curtailment, also problems such as the “congestion” of the power grid, legal and regulatory uncertainties, and Brazil’s high interest rate.

According to data from the regulatory agency, over the course of 2025, 509 generation project concessions (including solar and wind) were revoked, totaling around 22GW of installed capacity. 

In an interview with BNamericas, the president of Absolar, Rodrigo Sauaia, warned that cancellations of projects will continue to occur in Brazil in the coming years as long as structural bottlenecks in the power system persist, such as delays in transmission line works, operational constraints and the absence of an adequate financial compensation mechanism for curtailment.