Tamboril Small Hydro Power Plant

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The Brazilian company Triton Energia Ltda was granted the authorization to build a small hydro power plant located in the state of Goias. The 30-year contract was signed with the regulatory agency ANEEL in December 2007. In December 2012, Triton transferred 65.3% of the shares to Electra Power and 24.7% to Bonito Energia Investimentos (only 10% of the shares remained with Triton). The special purpose company Tamboril Energetica S.A. was created to lead the project. The power plant was named PCH Tamboril (22 MW) The government periodically runs public bidding for the sale of energy to the country´s distribution companies. In December 2013, the power plant took part in a competitive bidding process to sell electricity to the regulated wholesale market (30-year power purchase agreement was signed guaranteeing the sale of electricity to the national grid). The power plant offered a tariff of US$ 58.2/MWh (BRL 136.9/MWh) and committed to start supply the market in 2018. Tamboril Energetica committed to invest US$ 9.3 million (BRL 21.9 million) in the power plant. As for December 2014, construction works were in its final stages, and commercial operation was expected to start in February 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.