Brennand Energia

active

The Brazilian company Brennand Energia, a wholly-owned subsidiary of Grupo Brennand, was granted several authorizations to build eleven small hydro power plants located in the states of Mato Grosso, Tocantins, Goais and Mato Grosso do Sul (204 MW in total capacity). The 30-year contracts were signed with the regulatory agency ANEEL over the years since October 1999. The first contract signed was for the Antonio Brennand Power Plant (also known as Alto Jauru), which was set to have a capacity of 22 MW. Construction works on this plant started in 2002 and the unit became operational in 2003. Nine other projects were implemented since then and, as of December 2009, were also operational: PCH Ombreiras, located at Araputanga (Mato Grosso), with capacity of 26 MW; PCH Indiavaí, located at Araputanga (Mato Grosso), with capacity of 28 MW; PCH Santa Gabriela, located at Rio Correntes (Mato Grosso do Sul), with capacity of 24 MW; PCH Planalto, located at Apore River (Goiás), with capacity of 17 MW; PCH Ouro, located at Marmeleiro River (Rio Grande do Sul), with capacity of 16 MW; PCH Graça Brennand (also known as Terra Santa), located at Juba River (Mato Grosso), with capacity of 27.4 MW; PCH Pampeana , located at Juba River (Mato Grosso), with capacity of 28 MW (Pampeana Energética S.A.); PCH Diacal, located at Palmeiras River (Tocantins), with capacity of 5 MW; PCH Sobrado, located at Sobrado River (Tocantins), with capacity of 5 MW; and PCH Dianopolis, located at Manoel Alvinho River (Tocantins), with capacity of 5,5 MW. In 2007, Brennand Energia committed to invest US$ 333.3 million (BRL 650 million) in the construction of the PCHs Santa Gabriela, Planalto, Ouro, Graça Brennand, Pampeana and Ibirama. In 2008, the sponsor began the construction of PCH Santa Gabriela, managed by Santa Gabriela Energetica S.A. This power plant was financed with a US$ 40.3 million (BRL 73.8 million) loan granted from the state-owned bank BNDES, which was approved in August 2008 (total investment was estimated at US$ 50.3 million or BRL 92 million). In 2009, the sponsor began the construction of PCH Ibirama, located at Itajai do Norte River and managed by Ibirama Energetica S.A. This power plant was set to have a capacity of 21 MW and was financed with a US$ 30.6 million (BRL 61.2 million) loan granted from the state-owned bank BNDES, which was approved in October 2009 (total investment was estimated at US$ 50 million or BRL 100 million). In 2010, the sponsor began the construction of PCH Unai Baixo (26 MW in capacity). The investment committed to the power plant was not available. The project was financed with a loan granted by BNDES in November 2011 amounting to US$ 63.3 million (BRL 103.3 million). Most of the power plants were set to sell electricity to the national grid. PCH Pampeana, for instance, had agreements with the distribution company CERON. PCH Ibirama signed power purchase agreements arranged with the state-owned company Eletrobras for 20 years through the Brazilian Federal program PROINFA (incentive program for alternative power generating companies). PCH Unai Baixo also signed power purchase agreement and committed to commence operations in 2013. In August 2013, two new small power plants managed by Brennand Energia were awarded contracts to sell electricity to the electricity distribution companies starting in September 2015: PCH Cantu 2 (18 MW) and PCH Manopla (5 MW). Located in the state of Parana, PCH Cantu 2 was iniatially awarded to Plena Energia in June 2004, which established a special purpose company Cantu Energetica to manage the 30-year BOT contract. In June 2010, Plena transferred the project to Brennand Energia. The sponsor committed to invest US$ 37.7 million (BRL 112.1 million) in the project. As of December 2013, construction works had not commenced. The 30-year BOT contract for PCH Manopla was awarded in June 2011 to Brennand Energia Manopla S.A. The small power plant was set to be built in the state of