Brazil's Renova delays 400MW wind complex amid credit crunch

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Monday, November 28, 2016

Brazil's Renova Energia has postponed the completion of its 400MW Alto Sertão 3 wind project due to financing problems, according to the company's CEO.

The complex in the northeastern Brazilian state of Bahia was expected to be completed this year, having secured a 20-year supply contract at a regulated market auction in 2013.

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Renova CEO Carlos Figueiredo said the project was 90% complete but that a funding delay by national development bank BNDES meant it would not be ready before March.

"BNDES are yet to provide us with the credit," CanalEnergia quoted Figueiredo as saying. "This is not only a difficulty facing Renova. There are other companies in the same situation with the bank."

Figueiredo added that the company also needed the loan to stabilize cash flow and repay maturing debt.

Renova is the renewable energy unit of Belo Horizonte-based group Cemig.