A significant proportion of the wind projects awarded in Brazil's latest tender are likely to experience severe delay or even cancellation, analysts have predicted. The auction in August saw the average contracted price for energy drop to $62/ MWh. Delving into the figures more closely, a report by analysts at Bloomberg New Energy Finance (NEF) has concluded that 40% of the total wind capacity tendered, representing 32 out of 78 projects, would yield equity returns below 10% for developers. This raises the possibility that many low-yield projects will not be built, said the analysts. At least 25-40% of total tendered capacity in 2010-11 is likely to experience severe delay, the analysis concluded. Some cancellations are also anticipated, prompting NEF to revise its Brazil market forecast downward.
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