Santa Vitoria Thermal Power Plant

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In October 2013, the Brazilian company Santa Vitoria Acucar e Alcool Ltda was granted the 30-year authorization to build and operate a sugar-cane-residue fueled power plant located in the state of Minas Gerais (124.2 MW in total capacity). The power plant was named UTE Santa Vitoria. Santa Vitoria Acucar e Álcool Ltda was established as a subsidiary of ERB - Energias Renováveis do Brasil S.A.(a partnership of the investment funds FIP Ambiental, 26,4%; Rioforte Investment Holding, 26.2%; state-owned FI-FGTS, 26.2% and BNDES Participacoes, 20.5%). In July 2014, the contract was transferred to a newly created Project company named ERB MG Energias S.A. The value of the investment was estimated at US$ 82.4 million (BRL 245.2 millions). The government periodically runs public bidding for the sale of energy to the country´s distribution companies. The power plant won the public bidding that took place in April 2015, by offering an average tariff of US$ 91.4/MWh (BRL 272/MWh) for 25-year power purchase agreements with the several electricity distribution companies. Commercial operations of the power plant commenced in June 2015. In November 2015, the state-owned bank BNDES approved a US$ 10.5 million (BRL 35.1 million) loan to the project company.