Nova Olinda Solar Farm

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The Italian company Enel Green Power was granted the authorization to build seven solar power plants located in the state of Piaui, municipality of Ribeira do Piaui (210 MW in total capacity). The 35-year contracts were signed with the regulatory agency ANEEL starting in March 2016. The company Enel Green Power Brasil Participacoes created four special purpose companies to manage the projects: SOL Olinda 8 (30 MW) - Enel Green Power Nova Olinda Norte Solar S.A SOL Olinda 9 (30 MW) - Enel Green Power Nova Olinda Norte Solar S.A SOL Olinda 10 (30 MW) - Enel Green Power Nova Olinda B Solar S.A SOL Olinda 11 (30 MW) - Enel Green Power Nova Olinda B Solar S.A SOL Olinda 12 (30 MW) - Enel Green Power Nova Olinda C Solar S.A SOL Olinda 13 (30 MW) - Enel Green Power Nova Olinda C Solar S.A SOL Olinda 14 (30 MW) - Enel Green Power Nova Olinda Sul Solar S.A The government periodically runs public bidding for the sale of energy to the country´s distribution companies. The power plants won the public bidding that took place in August 2015 by offering an average tariff of US$ 86.8/MWh (BRL 302.83/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies. Enel committed to start supplying the market in August 2017. The investment was estimated at US$ 417.6 million (BRL 1456.7 million) and was equity financed. The construction works started in July 2016. The project 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.