This was the maximum award for which Cascade submitted offers under the Subasta RER process and represents a complete vindication of Rurelec’s bidding strategy of entering three high priced bids into the tender.
The award follows a recent change in policy by Rurelec to take a more active role in expanding the Group’s presence in renewable energy. Earlier this year, Rurelec increased its stake to 100 per cent ownership of Cascade Hydro by buying out minority shareholders.
The successful bids were submitted so as to achieve a range of US$58 to US$60 per MWh for electricity generated in Cascade’s three new plants, to be constructed at Colca, Huasicancha and Chilcay in the Province of Junin.
Commenting on the agreement, Peter Earl, CEO of Rurelec said: "I am pleased that the Subasta RER tender has resulted in financial benefit for Rurelec shareholders.
"This is a crucial step in the development of Rurelec’s new portfolio of renewable power plants in Latin America at a time when the Pacific Alliance is leading the way towards the protection of new foreign investment in Peru, Chile, Colombia and Mexico. This is yet another step towards building a diversified portfolio of power capacity to replace the power plants nationalised in Bolivia in 2010."
