Suzlon to exit Brazil

BRAZIL: Indian turbine manufacturer Suzlon has filed for voluntary liquidation of its Brazilian operations, after 11 years in the country.

Suzlon has installed over 700MW of capacity in Brazil in 11 years

The firm said the move was "a consequence of multiple factors that are unique to Brazil".

A company spokesperson said: "We believe that this is a responsible decision for the benefit of long-term sustainability of the company and its shareholders."

Suzlon has around 740MW of wind capacity installed in Brazil, having entered the country in 2006.

The manufacturer said the decision to quit Brazil "does not, in any way, alter Suzlon's global operations strategy".

The South American country, the biggest wind market in the region, has suffered from political scandal and turmoil in the past three years, with the effects being felt widely.

Most recently, in mid-July former president Luiz Inacio Lula da Silva was convicted for corruption and sentenced to ten years in prison. This followed the impeachment of another former president, Dilma Rousseff, last year.

According to the Financial Times newspaper, roughly a third of the cabinet and congress are under investigation for corruption.

Brazil's power sector has not been immune from upheaval either. In December, the energy ministry cancelled a reserve power auction, claiming there was a surplus of energy.

Brazilian wind association Abeolica said at the time the government was at risk of a "great contradiction", having hinted at a package of measures to stimulate investment in the market.

The cancellation of that auction, and with wind projects receiving no contracts in the April 2016 A5 tender, it meant no wind capacity was contracted in 2016. This could lead to a downturn in activity beyond 2017, Abeolica warned.