Guaira Thermal Power Plant

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The Brazilian company Central Energetica Guaira Ltda, a wholly-owned subsidiary of Usina Acucareira Guaira Ltda, was granted an authorization by the regulatory agency ANEEL to build a 55-MW thermal power plant located in the state of São Paulo (municipality of Guaira). The cogeneration power plant was set to use sugar cane residues resulting from the ethanol producing unit belonging to the same company as fuel. In January 2009, Central Energetica Guaira signed a 30-year contract with ANEEL allowing the company to operate in the electricity market as a independent producer. This authorization granted the sponsor with the right to sell electricity in the Brazilian wholesale market. In August 2009, the company had taken part in a competitive bidding process to sell electricity to the regulated wholesale market (15-year power purchase agreement was signed guaranteeing the sale of electricity to the national grid). Of the 55 MW of electricity to be produced, 15 MW would be set aside for the ethanol producing unit consumption, while 25 MW was the capacity committed to the referred power purchase agreement. Central Energetica Guaira Ltda committed to invest US$ 50 million (BRL 100 million). In April 2009, the company was granted a US$ 40 million (BRL 80.00 million) loan contract from BNDES, a state-owned development bank. Construction works on this plant started in 2009, and the unit became operational in June 2010.