Innergex Renewable Energy has completed the acquisition of the 140-MW Duqueco hydro project in Chile, through its 50% ownership stake in Energia Llaima.
The Duqueco hydroelectric project includes two facilities on the Duqueco River: 85-MW Peuchen and 55-MW Mampil. Both were commissioned in 2001. Peuchen has a reservoir with four-hour regulation at full capacity and up to 12-hour regulation at partial capacity. The aggregated annual power generation is expected to reach more than 350,000 MW, and the electricity produced is sold under power purchase agreements at fixed prices until 2020 and on the spot market.
“With this acquisition, we will leverage our expertise in managing hydro facilities,” said Innergex President and Chief Executive Officer Michel Letellier. “We now have four facilities in Chile and we look forward to growing Energia Llaima and increasing our presence in the South American market by developing and acquiring other renewable energy facilities.”
Plans for this acquisition were announced in May 16, and more details are here.
The purchase price is about US$210 million. Fifteen-year term financing has been arranged and underwritten by South American bank Itau in the amount of US$130 million. Energia Llaima will be responsible for the remaining US$80 million of the purchase price.
Innergex conducts operations in Canada, the U.S., France, Iceland and Chile. The company manages a portfolio of assets that consists of interests in 68 operating facilities with an aggregate installed capacity of 1,725 MW (gross 3,072 MW), including 37 hydroelectric facilities and wind farms, solar farms and geothermal facilities.