Cristalandia Wind Park

Active

The Italian Enel Green Power was granted the authorization to build three wind power plants located in the state of Bahia, municipalities of Brumado, Rio de Contas and Dom Basilio (90 MW in total capacity). The 35-year contracts were signed with the regulatory agency ANEEL starting in September 2015. The company Enel Green Power Brasil Participacoes created three special purpose companies to manage the projects: EOL Cristalandia I - Enel Green Power Cristalandia I Eolica S.A. (30 MW) EOL Cristalandia II - Enel Green Power Cristalandia II Eólica S.A. (30 MW) EOL Cristalandia III - Enel Green Power Cristalandia III Eólica S.A. (30 MW) The total investment in the power plants was estimated at US$ 190 million, financed with the sponsor's equity. Construction works commenced in April 2016, and were expected to be concluded by 2017. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. EOL Cristalandia I, II and III won the public bidding that took place in April 2015 by offering an average tariff of US$ 47.9/MWh (BRL 177.46/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies. 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.