DESA Rio Grande do Norte Wind Farms

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The Brazilian company Dobreve Energia, a wholly-owned subsidiary of Grupo Malwee, was granted authorizations to build seven wind parks located in the state of Rio Grande do Norte (205.2 MW in total capacity). The 35-year contracts were signed with the regulatory agency ANEEL starting in July 2010. The following special purpose companies were creates to handle the parks: Desa Morro dos Ventos I S.A., Desa Morro dos Ventos III S.A., Desa Morro dos Ventos IV S.A., Desa Morro dos Ventos VI S.A., Desa Morro dos Ventos IX S.A., Desa Eurus I S.A. and Desa Eurus III S.A. The total investment in the power plants was estimated at US$ 487.5 million (BRL 820 million) for the five units of Morro dos Ventos Wind Park (145.2 MW in total capacity). Investment in the two 60-MW units of the Eurus Wind park was estimated at US$ 134 million (BRL 218.5 million). Financial closure on the Morro dos Ventos Wind Park was achieved in December 2011, when the sponsors were granted a US$ 340.1 million loan (BRL 555 million) from the state-owned development bank BNDES. At the same time, BNDES also granted loans to finance the Eurus Wind Park (US$ 85.8 million or BRL 140 million). All special purpose companies 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) in 2009. As of October 2011, construction works were underway and operations were expected to commence in 2012. The wind farm was expanded in 2013 when an additional 29.2 MW power plant started to be built. This unit, named DESA Morro dos Ventos II, required an investment of US$ 54.5 million (R$ 128.3 million). The state-owned bank BNDESs granted a US$ 19.5 million (BRL 46 million) loan in December 2013 and another US$ 35.8 million (R$ 84.3 million) in November 2014. EOL Morro dos Ventos I, III, IV, VI and IX commenced operations in March 2014, while EOL Eurus I and EOL Eurus III commenced commercial operations in December 2014. In February 2014, CPFL Renovaveis, a subsidiary of the Brazilian company CPFL Energia, acquired 100% of Dobreve's shares.