Malhadinha I Wind Power Plant

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The Brazilian companies Servtec Investimentos e Participacoes Ltda (50%) and Rio Bravo Investimentos (50%) were granted the authorization to build one wind park located in the municipality of Ibiapina, state of Ceara (23.1 MW in total capacity). The 35-year contract was signed with the regulatory agency ANEEL in April 2012, and the sponsors created the special purpose company Geradora Eolica Bons Ventos da Serra I S.A. to lead the project. The power plant was named EOL Malhadinha 1. The total investment in the power plant was estimated at US$ 38.8 million (BRL 91.12 million) and was financed with a US$ 14 million (BRL 33 million) loan granted by the state-owned development bank BNDES approved in July 2014. In 2015, BNDES approved additional financing of US$ 15.1 million loan (BRL 50.3 million) to the project. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. EOL Malhadinha 1 won the public bidding that took place in August 2011, by offering an average tariff of US$ 60.6/MWh (BRL 98.95/MWh). The project company signed 20-year power purchase agreements with the several electricity distribution companies. Geradora Eolica Bons Ventos da Serra I S.A. committed to start supplying to the market in 2014. Construction works commenced in May 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 accelated depreciation methods of accounting for construction expenditures. In July 2012 the company applied for carbon credits.