Aracati Wind Complex

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The Brazilian company Alupar was granted authorizations to build five wind power plants located in the state of Ceara (94 MW in total capacity). The wind farm was named Aracati Wind Complex, and the sponsors created different special purpose companies to manage each power plant, as described below. * EOL Goiabeira (19,2MW) - Energia dos Ventos I S.A. * EOL Ubatuba (12,6MW) - Energia dos Ventos II S.A. * EOL Santa Catarina (16MW) - Energia dos Ventos III S.A. * EOL Pitombeira (27MW) - Energia dos Ventos IV S.A. * EOL Horizonte (14.4 MW) - Energia dos Ventos X S.A. The 35-year contracts were signed with the regulatory agency ANEEL in 2012. In 2011, the company took part in a competitive bidding process to sell electricity to the regulated wholesale market (15-year power purchase agreement was signed guaranteeing the sale of electricity to the electricity distribution companies). The sponsor submitted the winning bids of US$ 65.6 /MWh (BRL 107.7/MWh) for all power plants of Aracati Wind Complex. The total investment committed to the power plants was estimated at US$ 92.4 million (BRL 308.2 million). In December 2015, the state-owned bank BNDES approved a US$ 78.3 million (BRL 261.3 million) loan to the project. The remaining investment cost was set to be equity financed. The company was granted the right to take part in the government program called Regime Especial de Incentivos para o Desenvolvimento da Infra-Estrutura (Reidi). Companies selected to take part in this program were given tax cuts in the acquisition of capital equipment and construction material acquired both in the domestic and international markets (this incentive represented a cost reduction of about 9.25%). In addition, the company was allowed to use accelerated depreciation methods of accounting for construction expenditures. Finally, the electricity sold by the company was not subject to sector taxes.