Centrais Eletricas de Pernambuco (EPESA)

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The Brazilian company Termomanaus was granted authorizations by the regulatory agency ANEEL to build four thermal power plants located in the state of Pernambuco (municipalities of Cabo de Santo Agostinho and Iguarassu), Paraiba (municipality of Conde) and Rio Grande do Norte (municipality of Santa Cruz). The power plants located in Pernambuco were named Termomanaus and Pau Ferro I and had capacities of 156.1 MW and 102.6 MW, respectively); the plant established in Paraiba, named Termoparaiba, had capacity of 107.8 MW; and the unit located in Rio Grande do Norte, named Termonordeste, had 107.8 MW in capacity. All power plants were set to use diesel and biodiesel as fuel. In April 2007 and December 2007, 35-year contracts were signed with the regulatory agency ANEEL allowing the company to operate in the electricity market as an independent producer. These authorizations granted the sponsor with the right to sell electricity in the Brazilian wholesale market. In 2006, Termomanaus and Pau Ferro I took part in a competitive bidding process to sell electricity to the regulated wholesale market (15-year power purchase agreements were signed guaranteeing the sale of electricity to the national grid). In July 2007, Termoparaiba and Termonordeste were also able to sign 15-year power purchase agreements were signed guaranteeing the sale of electricity to the national grid. Termomanaus shareholders were DC Energia e Participacoes Ltda (63%), Aruana Energia S.A. (32%) and other (5%). In 2008, Termomanaus changed its name to Centrais Eletricas de Pernambuco (EPESA). In 2010, it requested that the authorizations granted for the construction of Termoparaiba and Termonordeste were transferred to Centrais Elétricas da Paraíba (EPASA). This request came as CPFL Energia acquired 51% of the shares of EPASA in November 2009 and provided the funding to complete the construction works on these two power plants (see ID# 5535). The investment committed to Termomanaus and Pau Ferro I summed up to US$ 82 million (BRL 150 million). Financing for these power plants were obtained in 2008 with the emission of convertible bonds worth US$ 93.4 million (BRL 171 million). Construction works commenced in the first half of 2008, and operations commenced in mid-2009.