CPFL Renovaveis Atlantica Wind Park

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The Brazilian company CPFL Energias Renovaveis S.A., a joint-venture company owned by CPFL Energia (63.6%) and ERSA (36.4%), was granted the authorizations to build four wind power plants located in the state of Rio Grande do Sul (120 MW in total capacity ). The 35-year contracts were signed with the regulatory agency ANEEL starting in February 2011. The sponsors created the following special purpose companies to manage the power plants: Atlantica I Parque Eolico S.A. - EOL Atlantica I (30 MW) Atlantica II Parque Eolico S.A. - EOL Atlantica II (30 MW) Atlantica IV Parque Eolico S.A. - EOL Atlantica IV (30 MW) Atlantica V Parque Eolico S.A. - EOL Atlantica V (30 MW) In August 2010, all wind power plants took part in the same competitive bidding process to sell electricity to the regulated wholesale market, starting in 2013 (20-year power purchase agreements were signed guaranteeing the sale of electricity to the national grid). The average tariff offered in the bidding process by the power plants was US$ 68.4/MWh (BRL 135/MWh). The total investment in the project was estimated at US$ 368.4 million (BRL 727.60 million). As of October 2012, construction works were not yet underway. Commercial operations were estimated to commence in July 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. In 2011, the sponsor applied for carbon credits. In April 2013, the state-owned bank BNDES was granted a US$ 112.1 million (BRL 263.8 million) loan to finance the construction works. In July 2014, BNDES approved another loan amounting to US$ 163 million (BRL 383.7 million). Construction works were underway in 2013, and operations commenced in February 2014.