Vista Alegre I and Vista Alegre II Thermal Power Plants

Active

Prospective

The Brazilian company Energisa Geracao FIP Biomassa, a subsidiary of group Energisa Geracao , was granted authorizations to build and operate four sugar-cane-residue fueled power plants located in the state of Mato Grosso do Sul (175 MW in total capacity). The sponsors created special purpose companies to manage each power plant, detailed below: * Energisa Bioeletricidade Vista Alegre I - UTE Vista Alegre I (30 MW) - Investment: US$ 40.2 million (BRL 94.55 million) * Energisa Geracao Vista Alegre II - UTE Vista Alegre II (30 MW) - Investment: US$ 40.2 million (BRL 94.55 million) A 30-year authorization contract was granted by the regulatory agency ANEEL to UTE Vista Alegre I in December 2008, and 35-year authorization for the others starting in 2014. The construction works at the UTE Vista Alegre I and UTE Vista Alegre II commenced in January 2014 and August 2013, respectively. As of December 2014, works were in advanced stage, and operations were expected to begin in early 2015. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. UTE Vista Alegre I and UTE Vista Alegre II won the public bidding that took place in December 2013 by offering an average tariff of US$ 56.6/MWh (BRL 133.00/MWh). The project companies signed 25-year power purchase agreements with the several electricity distribution companies. The project 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 accelated depreciation methods of accounting for construction expenditures. In December 2014, the Brazilian company Geracao Bioeletricidade Holding S.A., a subsidiary of the Canadian group Brookfield, acquired the power plants from Energisa Geracao.

Energy

World Bank Group

Project

Biomass, Commercial, Geothermal, Power Generation (CCGT), Steel, Government, Manufacturing (Industrial)