Shell cancels onshore and solar wind projects in Brazil

Shell has announced that it will discontinue its solar and wind energy generation projects in Brazil as part of "portfolio adjustments", the company stated on Thursday.

The move is made in an unfavorable climate for renewable energy investments in Brazil. Projects have been unable to be implemented because of a lack of demand, slow growth in supply, and regulatory issues.

Shell's global strategy also includes a reduction in spending on renewable and low-carbon businesses.

Shell stated in a press release that it is always looking for ways to add value to its power generation portfolio. This includes exiting any activities which do not meet our strategy, or generate a sufficient return.

Documents from the official gazette of the Brazilian government showed that the company had been trying to revoke its right to operate solar plants in Brazil's northeastern and center-west regions.

Shell has said that the plants being closed are centralized power generators, which are large-scale.

The company said it would continue to run Prime Energy, which is a Brazilian firm with smaller solar assets, as part of the segment "distributed energy". (Reporting and writing by Leticia Furcuchima, Editing by David Gregorio).

(source: Reuters)