Volta Grande Thermal Power Plant

active

The Caete Cogeneration project involves the expansion of a cogeneration plant fuelled with sugar cane bagasse from 9 MW to 34 MW in the municipality of Conceicao das Alagoas, state of Minas Gerais. Usina Caete –part of the Carlos Lyra Group- owns the Caete Cogeneration project. In November 2005, Banco Nacional de Desenvolvimiento Economico e Social (BNDES) approved a US$36 million (80 million real) to Usina Caete - Filial Volta Grande; while the company was relying US$12.2 million (27 million real) on equity. In addition to funding the expansion of the power plant, part of the funds were also destined to increase sugar plantation. The loan from BNDES was approved under the Financial Support Program for Investments in Alternative Sources of Electric Energy (PROINFA). PROINFA was a government sponsored renewable energy program in which wind, biomass, and small hydro projects selected for development received access to BNDES financing and/or were guaranteed 20-year power sales contracts with federal utility Eletrobras. Commercial operations commenced in October 2006.