CPFL Renovaveis Rio Grande do Norte 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 Nortel (78,2 MW in total capacity ). The 35-year contracts were signed with the regulatory agency ANEEL starting in September 2011. The sponsors created the special purpose companies, Juremas Energia S.A. - EOL Juremas (16.1 MW) Macacos Energia S.A. - EOL Macacos (20.7 MW) Costa Branca Energia S.A. - EOL Costa Branca (20.7 MW) Pedra Preta Energia S.A. - EOL Pedra Preta (20.7 MW) In August 2010, all four 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 agreement was signed guaranteeing the sale of electricity to the national grid). The average tariff offered in the bidding process by the power plants was US$ 67.4/MWh (BRL 133,22/MWh). The total investment in the project was estimated at US$ 152.3 million (BRL 300.80 million). As of October 2012, construction works were not yet underway. Commercial operations were estimated to commence in September 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 May 2012, the sponsor was granted carbon credits. In December 2012, BNDES approved the following loans to the project companies: Juremas Energia S.A. - US$ 18.6 million (BRL 36.4 million) Macacos Energia S.A. - US$ 24 million (BRL 46.8 million) Costa Branca Energia S.A. - US$ 23.7 million (BRL 46.2 million) Pedra Preta Energia S.A. - US$ 23.7 million (BRL 46.2 million) In December 2013, BNDES approved additional US$ 124 million (BRL 291.8 million) loans to the project companies. Commercial operations commenced in December 2014.