Enel's Cristal Wind Farm

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The company Enel Green Power, a wholly-owned subsidiary of the Italian Enel Group, was granted authorizations to build three wind parks located in the state of Bahia (90 MW in total capacity, municipality of Morro do Chapeu). The 35-year contracts were signed with the regulatory agency ANEEL in January 2012. The following special purpose companies were created to manage each park: Enel Green Power Primavera Eolica S.A., Enel Green Power Sao Judas Eolica S.A. and Enel Green Power Cristal Eolica S.A. The power plants were named EOL Primavera, EOL Sao Judas and EOL Cristal, each with 30 MW in capacity. The total investment in the Cristal Wind Park was estimated at US$ 182.3 million (BRL 360 million) and was financed with a loan granted by the Denmark state-owned export credit agency EKF approved in May 2012. The US$ 180 million granted loan was set to finance Enel's wind parks in Romenia (Zephyr I), United States (Caney River) and Brazil (Cristal). In December 2013, the IFC approved a US$ 220 million A-loan to finance five of Enel's wind parks in Brazil: Modelo, Serra Azul, Fonte dos Ventos, Cristal and Curva dos Ventos. Information on how much of this funding was directed to each project was not released. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. The three power plants controlled by Enel won the public bidding that took place in August 2010, by offering an average tariff of US$ 68.75/MWh (BRL 121/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies. Enel Power committed to start supplying to the market in the second semester of 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. In November 2011, the company applied for carbon credits.