Xavantina Small Hydro Power Plant

active

In March 2010, the Brazilian company Xavantina Energetica S.A. (Celesc Geracao S.A.– 40% and Ritmo Energia S.A. – 60%) was granted the 30-year contract to build and operate the Xavantina Small Hydro Power Plant (6.07 MW total capacity), located between the municipalities of Xavantina e Xanxere, state of Santa Catarina (Irani River). The power plant was named PCH Xavantina. In August 2015, the company was granted power purchase agreements to sell electricity to distribution companies starting in 2018. The company presented a winning bid of US$ 60.8/MWh (BRL 202,85/MWh). The investment committed to the power plant was estimated at US$ 20.5 million (BRL 40 million). Construction works began in April 2014, and commercial operations commenced in September 2015. 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.