ENGIE Secures $1 Billion Financing for 1.3 GW Renewable Projects

Grenergy, an independent solar and wind power producer, announced the sale of 97 MW of solar assets located in the department of Arequipa in Peru to Yinson Renewables, the renewables unit of the multinational energy infrastructure company Yinson, and 77 MW of wind assets in Peru to ENGIE Energía Perú. The combined value of the transactions amounts to $150 million, which could rise to $154 million depending on meeting certain operational milestones.

The divestment of 97 MW solar assets is from the Matarani solar project, which has an annual production capacity of 260 GWh. The transaction with Yinson Renewables also includes the turnkey contract for the construction of the plant. The transaction amount would be up to $90 million, including meeting certain milestones.

The 77 MW wind portfolio consists of the 37 MW Duna Huambos project, which is in operation, and the 40 MW from Nairas projects, which are in the development phase. This transaction, which amounts to $60 million, could be increased by an additional $3 million.

The deals are in line with plans announced by Grenergy at its Capital Markets Day to sell between 350MW and 450MW of installed solar capacity annually, which will contribute to the company’s growth plans.

To achieve the objectives of the plan, the company has announced an investment of €2.6 billion (~$2.81 billion) until 2026: €1.5 billion (~$1.62 billion) will be allocated to the development of its portfolio of solar projects and €800 million (~$865.40 million) to boost battery storage.

“These operations reaffirm Grenergy’s ability to close deals in the different countries where we are present and allow us to advance in the objectives set out in our ambitious strategic plan while generating value and allowing us to obtain resources to continue growing supported by our own financing,” said David Ruiz de Andrés, CEO of Grenergy.

According to Mercom’s Annual and Q4 2023, Solar Funding and M&A report shows 231 large-scale solar project acquisitions in 2023 compared to 268 acquisitions in 2022. In 2023, almost 45.4 GW of solar projects were acquired 2023, compared to 66 GW in 2022, a 31% decline YoY.