Nova Mutum Small Hydro Power Plant

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The Brazilian company Agroenergetica Mato Grosso Ltda was granted the authorization to build a small hydro power plant located in the state of Mato Grosso . The 30-year contract was signed with the regulatory agency ANEEL in May 2012. The power company was named PCH Nova Mutum (14 MW). The government periodically runs public bidding for the sale of energy to the country´s distribution companies. In December 2013, PCH Nova Mutum took part in a competitive bidding process to sell electricity to the regulated wholesale market (the tariff offered was US$ 59.1/MWh (BRL 139/MWh). A 30-year power purchase agreement was signed guaranteeing the sale of electricity to the national grid. The sponsor committed to invest US$ 29.1 million (BRL 68.5 million) in the construction of the Nova Mutum power plant. 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. In December 2013, the company applied for carbon credits. Construction works commenced in , and commercial operations started in November 2014.