Santa Candida II Thermal Power Plant

active

The Brazilian company Energisa Geracao FIP Biomassa, a subsidiary of group Energisa Geracao , was granted the authorization to build and operate a 55-MW sugar-cane-residue fueled power plant located in the state of Minas Gerais. The sponsors created the following special purpose company to manage the project: * Energisa Geracao Santa Candida II - UTE Santa Candida II A 35-year authorization contract was granted by the regulatory agency ANEEL in August 2014. By December 2014, the Brazilian company Geracao Bioeletricidade Holding S.A., a subsidiary of the Canadian group Brookfield, acquired the project from Energisa Geracao. In December 2013, the company had been granted power purchase agreements to sell electricity to distribution companies starting in 2018. The investment committed to the power plant was estimated at US$ 65.6 million (BRL 218.84 million). Construction works commenced in December 2014 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.