Santa Vitoria do Palmar Wind Complex

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The Brazilian company Atlantic Energias Renovaveis was granted the authorization to build twelve wind power plants located in the state of Rio Grande do Sul, municipality of Santa Vitoria do Palmar (207 MW in total capacity). The 35-year contracts were signed with the regulatory agency ANEEL starting in July 2014. The project was named Santa Vitoria do Palmar Wind Complex. The company created twelve special purposes companies to manage the projects: Santa Vitoria do Palmar VII Energias Renovaveis S.A. - Aura Mangueira XVII (15 MW) Santa Vitoria do Palmar VI Energias Renovaveis S.A. - Aura Mangueira XV (18 MW) Santa Vitoria do Palmar V Energias Renovaveis S.A. - Aura Mangueira XIII (15 MW) Santa Vitoria do Palmar IV Energias Renovaveis S.A. - Aura Mangueira XII (15 MW) Santa Vitoria do Palmar III Energias Renovaveis S.A. - Aura Mangueira XI (9 MW) Santa Vitoria do Palmar XI Energias Renovaveis S.A. - Aura Mangueira VII (24 MW) Santa Vitoria do Palmar ll Energias Renovaveis S.A. - Aura Mangueira VI (27 MW) Santa Vitoria do Palmar I Energias Renovaveis S.A. - Aura Mangueira IV (21 MW) Santa Vitoria do Palmar X Energias Renovaveis S.A. - Aura Mirim VIII (9 MW) Santa Vitoria do Palmar IX Energias Renovaveis S.A. - Aura Mirim VI (9 MW) Santa Vitoria do Palmar VIII Energias Renovaveis S.A. - Aura Mirim IV (15 MW) Santa Vitoria do Palmar XII Energias Renovaveis S.A. - Aura Mirim II (30 MW) The total investment in the power plants was estimated at US$ 377.6 million (BRL 1,2 billion). Financial closure was achieved in April 2017, when the sponsor was granted a US$ 213.7 million (BRL 679 million) loan from the Brazilian bank BNDES. The remaining cost was set to be equity financed. Construction works commenced in August 2015, and some units were already in operation by June 2017. The remaining units were expected to be concluded by the end of 2017. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. Aura Mangueira VII and Aura Mirim II won the public bidding that took place in June 2014 by offering an average tariff of US$ 55.1/MWh (BRL 129.5/MWh). The other projects won the public bidding that took place in December 2013 by offering an average tariff of US$ 50.8/MWh (BRL 119.49/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies. The companies were 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.