Morro dos Ventos II Wind Power Plant

Active

The company Desa Morro dos Ventos II S.A., a subsidiary of the Brazilian company Dobreve Energia S.A. ,owned by CPFL Energias Renovaveis S.A., was granted the authorization to build a wind power plant located in the municipality of Joao Camera, state of Rio Grande do Norte (26.90 MW in total capacity). The 35-year contract was signed by the special purpose company Desa Morro dos Ventos II S.A. with the regulatory agency ANEEL in June 2012. The power plant was named EOL Morro dos Ventos II. The total investment was estimated at US$ 55.5 million (BRL 115.2 million) and was financed with a US$ 28.3 million (BRL 84.3 million) loan granted by the state-owned development bank BNDES in March 2015. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. The power plant won the public bidding that took place in December 2011 by offering a tariff of US$ 36.2/MWh (BRL 107.46/MWh). The project company signed 20 -year power purchase agreements with the several electricity distribution companies. Commercial operations begun in April of 2015. The company was granted the right to take part in the government program called Regime Especial de Incentivos para o Desenvolvimento da Infraestrutura (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.