WD Thermal Power Plant

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The Brazilian company WD Agroindustrial Ltda was granted the authorization to build and operate a sugar-cane-residue fueled power plant located in the state of Minas Gerais, municipality of Joao Pinheiro. A 30-year authorization contract was granted by the regulatory agency ANEEL to UTE WD in April 2004. The company initially had a capacity of 12 MW and would not trade electricity in the regulated market. This capacity was later increased to 18 MW. In April 2016, WD Agroindustrial Ltda. won the public bidding that took place in April 2016 by offering an average tariff of US$ 68.3/MWh (BRL 217.18/MWh). The project company signed 25-year power purchase agreements with the several electricity distribution companies. After winning the bidding process, the company was granted the authorization to increase the capacity of the power plant to 48 MW. The total investment in the expansion of the power plant was estimated at US$ 7.4 million (BRL 23.376 million). The construction works commenced in July 2016 and were in advanced stage as of June 2017.