Innergex Renewable Energy has been selected to acquire the 140MW Duqueco hydro project in Chile, for $210m.
Image: Innergex will enter South American renewable energy market by acquiring Duqueco hydro project. Photo: Photo by rawpixel on Unsplash.
The firm, in partnership with Energía Llaima, has been selected in a bid process to acquire in the Duqueco hydro project, which includes two hydro facilities 85MW Peuchen and 55MW Mampil.
Commissioned in 2001, the Peuchen and Mampil facilities are located on the Duqueco river, 60km east of Los Angeles city, Chile.
Power generated by the two hydro facilities is sold under power purchase agreements (PPAs) at fixed prices until 2020 and on the spot market.
The acquisition is subject to signing a final partnership agreement between the parties in future. It is also subject to certain regulatory approvals in Chile.
Innergex president and CEO Michel Letellier said: “We are very pleased to finally enter the Chilean market through the acquisition of hydro assets where we can leverage our substantial experience and expertise
“With this partnership, we intend to pursue a growth trajectory in this market and to expand our development platform throughout South America with a focus on high quality renewable energy projects.
“These transactions mark Innergex’s entry into South America through the building of a strong partnership with a solid company with expansion plans.”
Simultaneously, Innergex has signed an exclusivity agreement with Energía Llaima for a joint venture partnership to acquire a 50% stake in the company.
As per the agreement, Innergex will acquire 50% stake in Energía Llaima for $110m, which will be invested in the next three years.
A further $10m is planned to be invested in Energía Llaima by Innergex to contribute to its working capital.
Innergex develops, acquires, owns and operates run-of-river hydroelectric facilities, wind farms, solar photovoltaic farms and geothermal power generation plants. It has operations in Canada, the US, France and Iceland.
It holds stake in 64 operating facilities with an aggregate net installed capacity of 1,642MW (gross 2,886MW), including 34 hydroelectric facilities, 25 wind farms, three solar farms and two geothermal facilities.