Renic Small Hydro Power Plant

active

Carnauba Geracao de Energia S.A., a partnership of the Brazilian companies Electra Power (82%) and Triton Energia (18%), was granted the authorization to build and operate a 16-MW hydro power plant located in the state of Goias (Bonito River). The power plant was named PCH Renic. A 30-year authorization contract was granted by the regulatory agency ANEEL in January 2008. In December 2013, the company had been granted power purchase agreements to sell electricity to distribution companies starting in 2018. The company presented a winning bid of US$ 41/MWh (BRL 136.9 MWh). The investment committed to the power plant was estimated at US$ 7 million (BRL 23.4 million). Construction works commenced in July 2012 and were nearly concluded by December 2015. 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.