Caarapo Thermal Power Plant

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The Brazilian company Bioenergia Caarapo Ltda, a subsidiary of Raizen S.A. (a 50/50 partnership of the Dutch company Shell and the Brazilian company Cosan), was granted an authorization to build a 76-MW sugar-cane residue fueled power plant located in the state of Mato Grosso do Sul (municipality of Caarapo). The power plant was named UTE Caarapo, and the investment was estimated at US$ 143.2 million (BRL 286.3 million). In January 2009, the company signed a 30-year contract with the regulatory agency ANEEL allowing the company to build and operate the power plant. By May 2010, the power plant commenced operations but would trade electricity only to large consumers in the unregulated market. In August 2013, the company took part in a bidding process to establish 30-year power purchase agreements with electricity distribution companies; the company won the contracts by offering the tariff of US$ 40.3/MWh (BRL 134.37 /MWh). The company committed to commence operations by 2018. The power purchase agreement required the power plant to expand its capacity to 114 MW. The investment committed to the expansion was estimated at US$ 42 million (BRL 140.1 million). Construction works commenced in October 2013 and were nearly concluded by December 2015.