SAO PAULO, March 27 (Reuters) - Shell is

discontinuing its solar and onshore wind power generation

projects in Brazil, as part of a "portfolio adjustment", the

company said on Thursday.

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".