Energisa Renascenca Wind Farm

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The Brazilian company Energisa Geracao Centrais Eolicas RN S.A., a subsidiary of the Brazilian group Energisa S.A., was granted the authorizations to build five wind power plants located in the state of Rio Grande do Norte (150 MW in total capacity ). The 35-year contracts were signed with the regulatory agency ANEEL starting in April 2011. The sponsor created the special purpose companies to manage the projects: Energisa Geracao-Central Eolica Renascenca I - EOL Renascenca I (30 MW) Energisa Geracao-Central Eolica Renascenca II - EOL Renascenca II (30 MW) Energisa Geracao-Central Eolica Renascenca III - EOL Renascenca III (30 MW) Energisa Geracao-Central Eolica Renascenca IV - EOL Renascenca IV (30 MW) Energisa Geracao-Central Eolica Ventos de Sao Miguel - EOL Ventos de Sao Miguel (30 MW) In August 2010, all four wind power plants took part in the same competitive bidding process to sell electricity to the regulated wholesale market, starting in 2013 (20-year power purchase agreement was signed guaranteeing the sale of electricity to the national grid). The average tariff offered in the bidding process by the power plants was US$ 68.9/MWh (BRL 136/MWh). A equipment supply agreement was signed with Vestas in March 2011. The total investment in the project was estimated at US$ 364.6 million (BRL 720 million). As of October 2012, construction works were underway. Commercial operation was estimated to commence in September 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. Finally, the electricity sold by the company is not subject to sectoral taxes. In May 2012, the sponsor applied for carbon credits. In December 2012, the state-owned bank BNDES approved the following loans to the project companies: Central Eolica Renascenca I - US$ 29 million (BRL 56.7 million) Central Eolica Renascenca II - US$ 29 million (BRL 56.7 million) Central Eolica Renascenca III - US$ 29 million (BRL 56.7 million) Central Eolica Renascenca IV - US$ 29 million (BRL 56.7 million) Central Eolica Ventos de Sao Miguel - US$ 29 million (BRL 56.7 million) In September 2013, BNDES approved additional US$ 192.9 million (BRL 454.1 million) funding for the project. In March 2015, the Canadian group Brookfield acquired all shares of Energisa Geracao Centrais Eolicas RN S.A.