Ventos de Horizonte Wind Power Plant

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The Brazilian company Alupar was granted the authorization to build a wind power plant in the state of Ceara. The power plant, named EOL Ventos de Horizonte, was planned to have a capacity of 16.8 MW. The special purpose company Energia dos Ventos X S.A. was created to manage the project. The 35-year contract was signed with the regulatory agency ANEEL in July 2012. In December 2011, the power plant had been granted a 20-year power purchase agreement with several electricity distribution companies through public bidding. The sponsors offered tariff of US$ 54.4/MWh (BRL 107.69/MWh) and committed to start supplying the market in 2016. The investment was estimated at US$ 26.6 million (BRL 51.9 million). Construction works commenced in May 2015, and the power plant commenced operations in January 2016. 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.