The Brazilian Electricity Regulatory Agency (Aneel), the entity that regulates the Brazilian energy market, is expected to reject requests from the firm Gerdau about two hydropower projects.
Online news provider Estadao explained that Gerdau had required Aneel to modify the financial balance and extend the contracts.
Gerdau bought to Enterpa Energia the stations of Sao Joao (with a potential of 60 MW) and Cachoeirinha (45 MW) in 2008. However, work on the projects has not advanced because of troubles with the environmental licenses.
The investment made by Gerdau surpassed $160m.