Horizonte MP Solar Farm

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The Italian company Enel Green Power was granted the authorization to build three solar plants located in the state of Bahia, municipality of Tabocas do Brejo Velho (80 MW in total capacity): UFV Horizonte MP1 Solar (30 MW) UFV Horizonte MP2 Solar (30 MW) UFV Horizonte MP11 Solar (20 MW) The 35-year contracts were signed with the regulatory agency ANEEL starting in March 2016. Enel established a special purpose company to manage all power plants, named Enel Green Power Horizonte MP Solar S.A. The total investment in the power plants was estimated at US$ 110 million, financed with the sponsor's equity. Construction works commenced in September 2016 and were expected to be concluded by 2017. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. UFV Horizonte MP1, MP2 and MP11 won the public bidding that took place in August 2015 by offering an average tariff of US$ 90.5/MWh each (BRL 301.83/MWh). The project company signed 20-year power purchase agreements with the several electricity distribution companies. 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.