Iturerava Solar Park

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The Italian Enel Green Power, was granted the authorization to build six solar power plants located in the state of Bahia, municipality of Ituverava (210 MW in total capacity). The 35-year contracts were signed with the regulatory agency ANEEL starting in May 2015. The company Enel Green Power Brasil Participacoes created two special purpose companies to manage the projects: UFV Ituverava 1 - Enel Green Power Ituverava Solar S.A. (30 MW) UFV Ituverava 2 - Enel Green Power Ituverava Solar S.A. (30 MW) UFV Ituverava 3 - Enel Green Power Ituverava Solar S.A. (30 MW) UFV Ituverava 4 - Enel Green Power Ituverava Solar S.A. (30 MW) UFV Ituverava 5 - Enel Green Power Ituverava Sul Solar S.A. (30 MW) UFV Ituverava 6 - Enel Green Power Ituverava Sul Solar S.A. (30 MW) UFV Ituverava 7 - Enel Green Power Ituverava Sul Solar S.A. (30 MW) The total investment in the power plants was estimated at US$ 296 million (BRL 1096.2 million), financed with the sponsor's equity. Construction works commenced in January 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. The power plants won the public bidding that took place in October 2014 by offering an average tariff of US$ 50.1/MWh (BRL 215/MWh). The project companies 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.