UPDATE 1-Solar power firms seek delay to Brazil solar farm startups

(Adds details of requested delay, context)
SAO PAULO, April 8 (Reuters) - Canadian Solar Inc CSIQ.O ,
Renova Energia SA RNEW11.SA and four other solar power
companies have asked Brazil to allow them to delay the startup
of dozens of solar farms for two years due to current market
conditions.
In their letter to the government seen by Reuters on Friday,
the companies said Brazil's currency slump and the lack of local
supplies make the solar projects unfeasible at present.
The companies account for almost 80 percent of all projects
cleared for construction during a licensing round in 2014, or
around 690 megawatts of new power capacity.
The 2014 round was the first opened by Brazil exclusively
for solar power in a push to diversify electricity generation
away from hydropower after two years of droughts reduced
supplies to critical levels.
Brazil relies on hydro electricity for 67.9 percent of its
power. Thermal power accounts for 28.7 percent of Brazil's power
supply, while nuclear and wind power supply just 3.4 percent.
In their request addressed to power sector regulator Aneel
the companies asked for a two-year delay in start dates
originally planned for 2017.
Under Aneel's regulations, companies that fail to begin
generation at their expected dates must buy power on the spot
market to fulfill contract obligations, unless granted a waiver.
Aneel has yet to answer the companies, but it usually denies
such requests since the contracts specify that firms have to
shoulder the risks, including economic variables.
Several power generation projects are facing similar
problems in Brazil since its currency lost about 40 percent of
its value in 2015 and credit conditions deteriorated amid the
worst recession in decades.
There are dozens of power generation assets on sale in the
country as financially distressed companies try to reduce their
portfolios of projects.