Atacama Desert: Innergex Renewable Energy Buys Solar Park in Chile

Quebec, Canada - Innnergex Renewable Energy, the Canadian power producer for renewable energies, is diversifying its portfolio with the acquisition of a Chilean solar park.

The acquisition includes the 68 MW solar power plant PV Salvador SpA ("Salvador") in the Chilean Atacama Desert as well as 11-year, demand-based power purchase agreements ("PPAs") with a total annual power generation of 54.6 GWh. Salvador and the PPAs were acquired from Etrion Chile SpA, Total Solar Latin America SpA and Holding and Solventus Salvador SpA for net purchase prices of US$46.6 million and US$19.5 million, respectively.

The transaction also includes the transfer of 11-year demand-based PPAs with Empresa Eléctrica ERNC 1 S.A., a power trading company, to Innergex. These PPAs, which are volume-regulated on a timeblock basis could benefit Energía Llaima SpA, a joint venture of which Innergex owns a 50 percent interest.

“We are proud to announce the completion of our first acquisition with the proceeds from Hydro-Québec's private placement. The acquisition of Salvador is a strategic one that not only generates a quick return on investment, but also diversifies our energy portfolio in South America,” said Michel Letellier, Innergex President and Chief Executive Officer.

The Salvador solar power plant has a multi-year track record in power generation and is expected to generate 182.2 GWh(approximately 2700 full load hours) annually. The total net purchase price of USD 66.1 million will be financed entirely from the revolving credit facilities. The project and the acquired PPAs are free of project debt.

The Innergex share, which is listed in the global share index for renewable energies RENIXX World, lost 3.3 percent to a price of 11.80 euros in the last trading week. In today's trading (2020-05-20) the share is currently quoted at 12.10 euros.

Source: IWR Online, 20 May 2020