Light, a private public utility company, has decided to return the concession for the future 150 MW Itaocara hydroelectric power plant to the Brazilian government.

Although Light recently obtained a preliminary licence for the plant from Brazil’s environmental regulator Ibama, the company did not believe the remaining time of the concession was sufficient to guarantee a good return on investment.

The Concession for the Itaocara plant was awarded by the government in 2001, but construction was never started because of environmental licensing delays.

The head of state-run energy research company EPE, Mauricio Tolmasquim, has said that the Brazilian government may include Itaocara in the A-5 new energy auction, set for 13 December of this year.

Light, in response, indicated Itaocara Energia, its special purpose company that held the Itaocara concession, may participate in future auctions for the concession.

If constructed, the Itaocara facility would be located between the southeastern states of Rio de Janeiro and Minas Gerais.

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