CPFL Renovaveis Campo dos Ventos II

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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 a wind power plant located in the state of Rio Grande do Nortel (30 MW in total capacity ). The 35-year contract was signed with the regulatory agency ANEEL in April 2011. The sponsors created the special purpose company Campo dos Ventos II Energias Renováveis S.A. to manage the project which was named EOL Campo dos Ventos II. In August 2010, the power plant had taken part in the competitive bidding process to sell electricity to the regulated wholesale market, starting in 2013 (20-year power purchase agreement was signed guaranteeing the sale of electricity to the national grid). The tariff offered in the bidding process by the power plant was US$ 63.9/MWh (BRL 126.19/MWh). The total investment in the project was estimated at US$ 60,8 million (BRL 120 million). As of October 2012, construction works were not yet underway. Commercial operations were estimated to commence in August 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 November 2013, the state-owned bank BNDES approved a US$ 42.2 million (BRL 99.3 million) loan to finance the project. As of April 2014, construction works were still underway. Commercial operations commenced in December 2014.