Wedoany.com Report-Mar 28, Shell (SHEL.L), is discontinuing its solar and onshore wind power generation projects in Brazil, as part of a "portfolio adjustment", the company said on Thursday.
The logo of oil and gas company Shell is seen at a charging station in Brussels, Belgium November 13, 2024.
The move comes amid an unfavorable environment for renewable power investments in Brazil, where projects have struggled to be implemented due to oversupply of energy, a slow growth in demand and regulatory questions.
It also follows Shell's new global strategy, which included reducing spending on low-carbon and renewable businesses.
"We are always exploring ways to create value from our power generation portfolio, including exiting activities that do not fit into our strategy or do not generate sufficient returns," Shell said in a statement.
In recent months, the company has been seeking to revoke with Brazil energy regulator its rights to operate some solar plants in the country's center-west and northeastern regions, documents from the government official gazette showed.
Shell said the operations being discontinued are from centralized power generation plants, which are the ones of large-scale.
The firm added it will continue to operate Prime Energy, a firm that has smaller solar generation assets in Brazil, part of a segment called "distributed generation".
