EDP Renovaveis Brasil S.A.

active

In August 2002, Brazilian company Central Nacional de Energia Eolica S.A – CENAEEL was granted and authorization to build and operate a 4.8-MW wind power plant located in the state of Santa Catarina (municipality of Agua Doce). This power plant, known as Parque Eolico do Horizonte, began operations in 2003. Investment commitment was not available. In December 2002, the Brazilian company Parque Eólico de Santa Catarina Ltda was also granted a 30-year authorization to build and operate a 9-MW wind power plant located in the state of Santa Catarina (municipality of Agua Doce). In 2005, prior to the project construction works begin, the authorization was transferred to CENAEEL. In April 2006, the state-owned bank BNDES approved a US$ 9.4 million (BRL 20.5 million) loan to finance the construction of the 9-MW power plant. The total investment commitment to the project was US$ 13.5 million (BRL 29.5 million). The contracts signed with the regulatory agency ANEEL allowed the power plants to operate in the electricity market as independent producers. These authorizations granted the sponsor with the right to sell electricity in the Brazilian wholesale market. In October 2008, EDP Renovaveis do Brasil, a wholly-owned subsidiary of the Portuguese company EDP, acquired CENAEEL for US$ 27.9 million (BRL 51 million). This event represented the entry of EDP in the renewable power generation sector of Brazil. In March 2009, EDP Renovaveis do Brasil acquired another Brazilian company, Elebras Projetos Ltda, which held authorizations issued by Aneel in September 2002 to build and operate wind power plants located in the state of Rio Grande do Sul: Parque Eolico Elebras Santa Vitoria do Palmar I (126 MW) and Parque Eolico Elebras Cidreira I (70 MW). The transaction involved a payment of US$ 4.5 million (BRL 9 million) for Elebras’ shares. Construction works on these wind power plants were set to start in 2010. All the power plants 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 March 2011, the state-owned bank BNDES granted a US$ 139.5 million (BRL 227.7 million) loan to finance the infrastructure works at the Parque Eolico Elebras Cidreira I in Tramandai. The total investment committed to this project was estimated at US$ 153.2 million (BRL 250 million).