BJL11 Solar Power Plant

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The Turkish group Eren Renewable Energy SA was granted the authorization to build a solar power plant located in the state of Bahia, municipality of Bom Jesus da Lapa (20 MW in total capacity). The 35-year contract was signed with the regulatory agency ANEEL in April 2016. The company Eren Renewable Energy SA created the special purpose company BJL11 Solar S.A. to manage the project: The total investment in the power plant was estimated at US$ 24.9 million (BRL 79 million). Construction works commenced in March2017 and were expected to be concluded by October 2017. As of June 2017, construction works were nearly completed. No detailed financing information was available. The government periodically runs public biddings for the sale of energy to the country´s distribution companies. BJL11 Solar S.A. won the public bidding that took place in August 2015. The tariff offered in the auction was US$ 129.8/MWh (BRL 303.5/MWh). 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.