Energias do Brasil, in a 50% partnership with MPX Mineracao e Energia, has won a long-term power purchase agreement for the sale of electricity from the future Pecem coal plant, to be built in the Ceara state.
The conditions contracted in the electricity auction promoted by the Brazilian regulatory authorities include the availability of an installed capacity of 615MW for a 15-year term starting in January 2012 and a gross margin of R$417.4 million per year with the full pass-through of fuel costs.
The construction of this coal plant under a long-term power purchase agreement with the Brazilian regulated system is expected to support the achievement of an adequate reserve margin in the Brazilian electricity system over the next decade, taking into account the economic growth prospects of the country, the lack of new hydro projects available for construction in the short term and the current restrictions in terms of natural gas sourcing.