Itaenga Thermal Power Plant

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The Brazilian company Termoeletrica Itaenga Ltda, a wholly-owned subsidiary of Grupo Petribu, was granted an authorization to build a 22-MW thermal power plant located in the state of Pernambuco (municipality of Lagoa de Itaenga). The cogeneration power plant was set to use sugar cane residues, wood or oil as fuel. In March 2002, Termoeletrica Itaenga Ltda signed a 30-year contract with the regulatory agency 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. The company established supply contracts with Comercializadora Brasileira de Energia Emergencial (CBEE). The estimated investment on the 22-MW power plant was US$ 12 million in 2007 value (BRL 30 million in 2002 value). The power plant commenced operations in February 2007. In 2008, the company was granted the authorization to expand its capacity to 47 MW. The estimated investment commitment on this expansion was not available. In February 2009, the company was granted a US$ 32.3 million (BRL 64.7 million) loan contract from BNDES, a state-owned development bank. Construction works on this new generating unit were concluded in May 2010.