Nova Galia Thermal Power Plant

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The Brazilian company Nova Galia Bioenergia Ltda, a subsidiary of the Brazilian company Usina Nova Galia Ltda, was granted the authorization to build and operate a sugar-cane residue fueled power plant located in the state of Goias. The power plant was named UTE NG Bioenergia I (47 MW). The electricity generated by the power plant was set to be partially directed to Usina Nova Galia industrial facilities. The exceeding production was expected to be sold to the unregulated and regulated markets. The 30-year contract was signed with the regulatory agency ANEEL in January 2013. The value of the investment committed to the UTE NG Bioenergia I project was estimated at US$ 17 million (BRL 40 million). In October 2014, the state-owned bank BNDES granted a loan to finance the project of US$ 14.6 million (BRL 34.29 million). As of December 2014, the construction works of the power plant were underway. Commercial operations were expected to commence in June 2016. 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.