Sao Paulo — Brazil’s government has cancelled a June 27 auction to secure long-term power capacity, a publication in the official gazette showed on Friday.
The mines and energy ministry did not immediately provide reasons for the cancellation.
Interested parties had already launched court challenges to the auction rules and a federal judge this week ruled that a new public consultation had to be carried out before the auction could proceed.
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The June auction would have been the second of its kind held by Brazil and aimed to secure complementary power capacity, particularly during peak afternoon hours.
Large players in the thermoelectric sector had shown interest, including state-run oil producer Petrobras, Ambar Energia and Eneva, which is backed by lender BTG Pactual.
The government in January loosened rules for the auction in a move that was seen as positive for Eneva.
Reporting by Leticia Fucuchima Editing by David Goodman – Reuters
