Delfina Wind Park

active

The Italian Enel Green Power, was granted the authorization to build seven wind power plants located in the state of Bahia, municipality of Campo Formoso (210 MW in total capacity). The 35-year contracts were signed with the regulatory agency ANEEL starting in May 2015. The company Enel Green Power Brasil Participacoes created five special purpose companies to manage the projects: EOL Delfina I - Enel Green Power Delfina A Eolica S.A. (30 MW) EOL Delfina II - Enel Green Power Delfina A Eolica S.A. (30 MW) EOL Delfina III - Enel Green Power Delfina B Eolica S.A. (30 MW) EOL Delfina IV - Enel Green Power Delfina C Eolica S.A. (30 MW) EOL Delfina V - Enel Green Power Delfina A Eolica S.A. (30 MW) EOL Delfina VI - Enel Green Power Delfina D Eolica S.A. (30 MW) EOL Delfina VII - Enel Green Power Delfina E Eolica S.A. (30 MW) The total investment in the power plants was estimated at US$ 400 million, financed with the sponsor's equity. Construction works commenced in January 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 Delfina I, II and V won the public bidding that took place in October 2014 by offering an average tariff of US$ 37.5/MWh (BRL 138.88/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.