Barra dos Coqueiros Wind Power Plant

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The companies Desenvix Energias Renovaveis S.A. (95%) and Agua Quente Participacoes Ltda (5%) were granted the authorization to build a wind park located in the state of Sergipe (30 MW in total capacity, municipality of Barra dos Coqueiros). Desenvix Energias Renovaveis initially belonged to the Brazilian company Jackson Empreendimentos, but, as of August 2011, the Norwegian company SN Power acquired 40.65% of Desenvix Energias Renoveis shares. The 35-year contract was signed with the regulatory agency ANEEL in July 2010. The sponsors created the special purpose company Energen Energias Renovaveis to manage the project, which was named EOL Barra dos Coqueiros. The total investment in the project was estimated at US$ 62.5 million (BRL 123,4 million) and, was financed with a loan granted by The China Development Bank (CDB) approved in September 2012 (US$ 50 million or BRL 98.7 million). The government periodically runs public bidding for the sale of energy to the country´s distribution companies. The power plant controlled by Eneergen l won the public bidding that took place in December 2009, by offering an average tariff of US$ 80.1/MWh (BRL 158.2/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies. Energen committed to start supplying to the market in the second semester 2013. 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 is not subject to sectoral taxes.