GLEP Energias Renovaveis

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The Brazilian company Construtora Gomes Lourenco, also known as GLEP Energias Renovaveis, was granted two authorizations to build small hydro power plants located in the states of Minas Gerais and Santa Catarina (44.5 MW in total capacity). The 30-year contracts were signed with the regulatory agency ANEEL. The first contract signed was for the Piedade Power Plant in December 2002, which was set to have a capacity of 16 MW. Construction works on this plant located in the Piedade River/Minas Gerais started in 2008 and were were concluded in August 2010. The second contract signed was for the Santa Luzia Power Plant in December 2007, which was set to have a capacity of 28.5 MW. Construction works on this plant located in the Chapeco River/Santa Catarina started in October 2008 and were concluded in July 2011. The project company Piedade Usina Geradora de Energia S.A. was created to manage PCH Piedade. Financing for this project was provided by a US$ 24.7 million (BRL 48.1 million) loan granted by the state-owned bank CEF in December 2007. Total investment was estimated at US$ 32.2 million (BRL 62.8 million). The project company Santa Luzia Energetica S.A. was created to manage PCH Santa Luzia. Financing for this project was provided by a US$ 49.9 million (BRL 91.3 million) loan granted by the state-owned bank BNDES in August 2008. Total investment was estimated at US$ 74.5 million. Both power plants signed power purchase agreements to supply electricity in the regulated market (distribution companies). These agreements represented the sale of more than 20% of the power plants capacity and were made possible because the sponsors took part in competitive bidding processes that took place in 2006 and 2007.