Ventos dos Indios Wind Park

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The company Ventos dos Indios S.A., a subsidiary of the company Ventos do Sul Energia (a partnership of the Spanish companies Elecnor,36%, and Enerfin, 64%), was granted authorizations to build two wind power plants located in the state of Rio Grande do Sul, municipality of Osorio (53 MW in total capacity). The35-year contracts were signed with the regulatory agency ANEEL starting in Feb 2012. The power plants were named EOL Parque Eolico dos Indios 2 (29.9 MW) and EOL Parque Eolico dos Indios 3 (23 MW). The total investment in the power plants was estimated at US$ 54.5 million (BRL 128 million) for Parque Eolico dos Indios 2 and at US$ 34 million (BRL 80 million) for EOL Parque Eolico dos Indios 3. The projects were financed with a loan granted by the state-owned development bank BNDES approved in February 2014 (US$ 79 million or BRL 128.9 million). The government periodically runs public bidding for the sale of energy to the country´s distribution companies. The power plant Dos Indios 2 won a public bidding that took place in 2011, by offering an average tariff of US$ 61.3/MWh (BRL 100.01/MWh). The power plant Dos Indios 3 won a public bidding that also took place in 2011, by offering an average tariff of US$ 63.71/MWh (BRL 103.99/MWh). The project company signed 20-year power purchase agreements with the several electricity distribution companies. Ventos dos Indios committed to start supplying to the market in 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 accelated depreciation methods of accounting for construction expenditures. Commercial operations commenced in December 2014.