Inxu Small Hydro Power Plant

Active

The Brazilian company Inxu Geradora e Comercializadora de Energia Eletrica S.A. was granted the authorization to build a small hydro power plant (PCH Inxu) located in the state of Mato Grosso (20.6 MW in total capacity). The 30-year contract was signed with the regulatory agency ANEEL in September 2011. Inxu Geradora committed to invest US$ 56.5 million (BRL 133 million) in the construction of the power plant. In April 2013, the state-owned bank BNDES approved a US$ 42.5million (BRL 100 million) to finance the project. In August 2010, the power plant took part in the 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$ 65.8/MWh (BRL 129.93/MWh). In April 2012, the sponsor began the construction works. As of April 2014, operations were expected to begin by September 2014. 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 2012, the company applied for carbon credits.