CPFL Renovaveis Buriti, Ipe, Baia Formosa and Bio da Pedra Thermal Power Plants

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The Brazilian company CPFL Renovaveis was granted authorizations to build and operate four sugar-cane-residue fueled power plant located in the states of Sao Paulo, Minas Gerais, Parana and Rio Grande do Norte (185 MW in total capacity). The 30-year contract was signed with the regulatory agency ANEEL over the years starting in May 2002. The sponsors created the following special purpose companies to manage the projects: UTE Buriti (50 MW) – CPFL Bio Buriti S.A. UTE Ipe (25 MW) – CPFL Bio Ipe S.A. UTE Baia Formosa (40 MW) – CPFL Bio Formosa S.A. UTE Bio Pedra (70 MW) – CPFL Bio da Pedra S.A. CPFL Renovaveis was established as a partnership of the Brazilian companies CPFL Energia (63.6%) and ERSA (36.4%). The value of the investment committed to the Buriti, Ipe, Baia Formosa and Bio Pedra projects was estimated at US$ 356.7 million (BRL 600 million). The construction works of the power plants Baia Formosa (US$ 77.3 million or BRL 130 million) and Buriti (US$ 87.9 million or BRL 147.9 million) were concluded, as of August 2011, while the construction of the other units were underway. In December 2010, BNDES had granted loans to finance Baia Formosa and Bio Pedra: one loan worth US$ 58.5 million (BRL 98.4 million) for Bio Pedra and the other US$ 19.7 million (BRL 33.2 million). CPFL Bio Formosa S.A. 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). Commercial operations on this plant commenced in September 2011. Commercial operations on UTE Buriti commenced in October 2011.