A high efficiency pressure boiler providing 65 bar at 200 ton of steam per hour and 510°C (the first in the sugar industry in Brazil) is installed. This implies a significant reduction of the amount of bagasse used per ton of steam generated. Two new contra pressure-type turbo generators at 15 MW each and two new condensing-type turbo generators at 6 MW are also installed. Other investments projected include the construction of a new powerhouse, a new sub-station with a new measurement equipment, and a transmission line. Also the bagasse deposit is doubled, reaching a capacity of 80 000 tons of bagasse, equivalent to a production of 8 MWh during 6 months.

Average amount of energy being exported in the years before the investment for energy producing and selling in 2003, as a marginal cogeneration of energy according to fuel availability and sugar mill consumption

** The Forecast is made upon PPA considerations and market expectations. For 2003 the PPA requires a supply of 30MW and provides CPFL with a buying option of 3MW, the rest can be sold on the spot market if SE wants so.

**’ Forecast of firm energy sales minus average energy sold before the investment in 2003, considering that the energy sold before was a marginal generation dependent on the availability of bagasse.

Santa Elisa deactivates two old generators and three less efficient 21 bar boilers. The production capacity increases to 58 MW. With these investments, Santa Elisa achieves an installed capacity between 30 MW and 40 MW to produce electricity to the grid during the harvest season of 2003 (see Table 15.1). Investments reach US$ 20.7 million in this first phase. For the local utility company, it is advantageous to buy energy produced by a sugar mill, as the base load for utilities in Brazil is supported mainly through hydro generation, and the sugarcane crop season coincides with the dry period. CPFL3 has signed a ten-year purchase contract with Companhia Energetica Santa Elisa.