Innergex Renewable Energy, a Canadian power producer, acquired the 50.6 MW San Andres solar project located in the Atacama Desert in Northern Chile for a total purchase price of $25.7 million.
The project operates on a merchant basis. It has a contract to sell Non-Conventional Renewable Energy (NCRE) credits linked to electricity generation to a major energy producer formed in Chile until 2034.
“Through this transaction, Innergex continues to implement its growth in Chile,” said Michel Letellier, President and Chief Executive Officer of Innergex. “The acquisition of project will bring operational synergies possibilities with our Salvador solar facility located in the region. In addition, San Andrés has the potential for the development of a battery energy storage system and, since the connection to the grid is robust, it also offers opportunities for future expansions,” he added.
The project will produce a gross estimated long-term average of 118.9 GWh per year. The project is expected to reach targeted revenues of $5.5 million in its first full year, of which $1.3 million is derived from the sale of the NCRE of the project under contract until 2034 and $0.8 million from the capacity payment.
Innergex paid a total of $25.7 million for the project acquisition, fully financed with available cash in Chile and corporate revolving credit facility draws.
In July 2021, Innergex Renewable Energy acquired the remaining 50% interest in Energía Llaima for an aggregate consideration of $71.35 million. Innergex completed the acquisition by issuing to Energía Llaima’s shareholders 4,048,215 Innergex common shares for C$22.09 (~$17.70) per share, representing a 10-day volume-weighted average price.
According to Mercom’s recently published Q4 2021 solar funding and M&A report, there were 280 large-scale solar project acquisitions in 2021 compared to 231 transactions in 2020.
