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The downsizing has been attributed to difficulties in establishing new power generation projects.
Acciona Energia, a renewable energy division of Spanish infrastructure company Acciona, is set to restructure its operations in Brazil, Reuters has reported.
The reorganisation is a response to the current domestic market conditions. No further details were provided.
The company said in a statement seen by Reuters: “Brazil continues to be a key country for Acciona as a whole, and for Acciona Energia in particular.”
The decision to scale back comes just over two years after Acciona entered the Brazilian power generation market.
The downsizing has been attributed to difficulties in establishing new power generation projects, which have been impacted by low electricity prices and high debt and equipment costs.
The company is reducing its renewable energy workforce in Brazil from 40 to five or six employees.
Acciona has struggled to develop its renewable projects portfolio, which exceeds 1GW, due to low returns and high risks. These projects are expected to be returned to the original developers.
It will now shift its focus in Brazil towards construction and services, looking to capitalise on public sector concessions and new investments in the sanitation sector.
Despite participating in a recent auction for the operation of coastal highways in São Paulo state, Acciona was outbid by a consortium led by Companhia Brasileira de Infraestrutura.
In November 2023, with its partner Freya Renewables, it secured development rights to build a 160MW wind farm in the Philippines.
The rights were awarded by the Philippines Department of Energy under the fourth open and competitive selection process for renewable energy projects including hydropower, geothermal and wind. |
