OREANDA-NEWS. Brazil's National Electric Energy Agency the agreements to adjust power supply obligations of the Parnaíba II power plant.

The terms of the agreement, which were indicated by the board of Aneel in an extraordinary meeting on 9/5, represent a balanced solution for Parnaíba II, preserving the project's economic feasibility and the fulfillment of an important power supply contract to consumers.

The conditions of the agreement include:

• Postponement of the PPAs - Power Purchase Agreements of the plant, which will now be effective from July 1, 2016 to April 30, 2036;

• Generation replacement of the Parnaíba I plant by Parnaíba II plant until June 30, 2016, which procedure allows power production with optimized use of natural gas;

• Reduction of plant's fixed revenue totaling BRL 334,115,075.94, to be paid for in installments as of January 2022, as tariff contribution.

The reduction amounts to BRL 13,042,343.69 per year between 2022 and 2025, and to BRL 25,631,427.38 per year between 2026 and 2036, adjusted by inflation (IPCA); and• Commitment to close the cycle of the four open cycle gas turbines of Parnaíba I in up to five years from the signing of the agreement. The energy of such project shall be fully sold in the regulated market through an appropriate auction.

In case of breach of any of the terms and conditions abovementioned, a 20% increase over the amount of the reduction in plant's fixed revenue will apply.