Latin American energy developer Union Energy Group has acquired hydropower project owner Generacion Andina as part of the its expansion into Peru.
Generacion Andina, previously held by Germany’s Energie Baden-Wurttemberg (EnBW), is owns six hydroelectric plants that represent a total of 55.2 MW-worth of cumulative installed capacity.
Two projects are already completed and are operating with a 20-year, government-backed power purchase agreement already in place, while four others are in various stages of development. Combined, Union Energy said the portfolio will represent a total investment of US$145 million.
The next two to be constructed are the 8.4-MW El Carmen and 19-MW 8 de Agosto projects. HydroWorld.com reported that Generacion Andina had awarded a $77.9 million contract to Spanish company Sacyr for their construction earlier this year.
“Investing in run-of-river hydro projects such as those developed by Generacion Andina is for us a compelling way to gain exposure to Peru,” Union Energy Group director Francisco Roque de Pinho said. “These assets combine long-term, inflation-linked, dollar-denominated income, with downside protection and equity-like upside potential.”
The acquisition adds to the company’s existing 1 GW development portfolio in Peru, Union Energy said.
Union Energy was formed in 2011 by the Union Group to invest in, develop, build and operate power generation projects in Latin America.
For more news from Latin America, visit here.