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Brazil wind developers may be required to build new power lines to avoid delays

Proposed rule for Brazilian industry shifts transmission line onus from distributors to developers following grid connection deadline being missed

The rule will affect developers that win new contracts to sell energy in so-called A-3 government-organised auctions for wind power projects

Wind farm developers in Brazil may be required to assume the costs of connecting their power projects to the grid as the nation seeks to avoid further delays in constructing new transmission lines, according to reports. The news follows a proposed rule for the Brazilian industry being made after a distributor failed to meet a deadline in connecting more than 25 wind farms to the grid last year.

The rule will affect developers that win new contracts to sell energy in so-called A-3 government-organised auctions for power projects, Andre Pepitone da Nobrega, director of the country’s power regulator Agencia Nacional de Energia Eletrica, said at a conference in Sao Paulo.

Bloomberg said Brazil is shifting the onus of developing transmission lines to developers from distributors after the utility Cia. Hidro Eletrica do Sao Francisco failed to connect 26 wind farms in the northeast before a May deadline, Nobrega said. Transmission lines represent about 10 per cent of the cost of a typical wind farm, he said.

“We’re doing what we can to avoid a repeat of these delays,” Nobrega said.

Chesf, a unit of state-controlled power company Centrais Eletricas Brasileiras SA (ELET6), expects to complete the three transmission lines linking about 620 megawatts of wind farms by the end of the year, Nobrega said.