Coronavirus company news summary – Mexico and Nepal push back power plant plans – Ibitu to invest in Brazilian renewables

16 July 2020 (Last Updated July 17th, 2020 09:41)

16 July

Mexico’s state-run utility has suspended plans to construct four power plants because of the economic impact of the Covid-19 pandemic, Reuters reported. The tenders and financing for the Salamanca, Baja California Sur VI, San Luis Potosi and Los Humeros III Fase B plants have been called off by the Comision Federal de Electricidad.

In Nepal, the ongoing coronavirus crisis and heavy flooding may delay the completion of 24 hydropower projects by two years. The projects have a planned net output capacity of 1.2GW. Furthermore, flash floods at the beginning of this month in Sindhupalchok have caused serious damage to the half-complete 102MW Middle Bhotekosi project site, the Nepali Times reported.

Ibitu Energia, a unit of American asset manager Castlelake, has announced plans to invest approximately $839m (BRL4.5bn) in renewable energy in Brazil over the next five years. Ibitu’s CEO Gustavo Ribeiro said that the move is part of the company’s plan to double its power generation capacity in Brazil by purchasing or building new power plants.

The Government of Punjab in India has decided to cut a late payment surcharge for electricity distribution companies to 0.75% per month, in view of the ongoing Covid-19 situation. The slashed rate will be applicable for payments that were delayed until 30 June, Mercom India reported. Power companies can claim relief under the force majeure provisions mentioned in their respective power purchase agreements.