Morro do Chapeu Sul Wind Farm

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The Italian company Enel Green Power was granted the authorization to build six wind power plants located in the state of Bahia, municipality of Morro do Chapéu (172 MW in total capacity). The 35-year contracts were signed with the regulatory agency ANEEL starting in June 2015. The company created four special purpose companies to manage the projects: Enel Green Power Morro Do Chapeu II Eolica S.A.: EOL Ventos de Santa Esperanca (28 MW), EOL Ventos de Santa Dulce (28 MW) Enel Green Power Morro Do Chapeu I Eolica S.A.: EOL Ventos de Sao Mario (30 MW), EOL Ventos do Sao Paulo (28 MW) Enel Green Power Sao Abraao Eolica S.A.: EOL Ventos de Sao Abraao (28 MW) Enel Green Power Boa Vista Eolica S.A.: EOL Boa Vista da Lagoinha (30 MW) The total investment in the power plants was estimated at US$ 380 million, financed with the sponsor's equity. Construction works commenced in September 2016 and are expected to be concluded by 2018. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. EOL Ventos de Esperanca, EOL Ventos de Santa Dulce, EOL Ventos de Sao Mario and EOL Ventos de Sao Paulo won the public bidding that took place in November 2014 by offering an average tariff of US$ 57.7/MWh (BRL 135.69/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies. The other two power plants (EOL Ventos de Sao Abraao and EOL Boa Vista) signed 20-year PPA (Power Purchase Agreement) in the spot market. 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.