Innergex acquires 18-MW run-of-river hydro facility in Chile

Lican small hydro

Innergex Renewable Energy Inc. has acquired 100% of the shares of Empresa Eléctrica Licà¡n S.A., which owns and operates an 18-MW run-of-river hydro facility in Chile with a reservoir for daily regulation for up to 3.5 hours.

The facility, commissioned in 2011, is located on the Licà¡n River in the region of Los Rios. According to BNamericas, Licà¡n was acquired for a total enterprise value of US$40.5 million, with an equity investment for Innergex of US$16.6 million, broken down to payment to the shareholders and the partial repayment of the existing debt and other costs. The equity investment will be financed with cash held in Chile.

“It was only last month that we consolidated our presence in Chile with the acquisition of the remaining interests in Energà­a Llaima. I mentioned at that time how we intend to increase our presence in the region, and the acquisition of Licà¡n supports this growth strategy in South America,” said Michel Letellier, president and chief executive officer of Innergex. “Licà¡n is a high-quality asset with nine years of proven profitability selling its output on the merchant market. The facility features a small reservoir that will allow us to regulate the flow for a continuous energy supply. The acquisition of Licà¡n complements our strategy to diversify our revenue sources by adding capacity revenues to our mix.”

The facility is expected to produce a gross estimated long-term average of 77.8 GWh per year. The asset is expected to reach an adjusted EBITDA of US$2.1 million on average for the first five full years.

Innergex is an independent renewable power producer that develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities. The company conducts operations in Canada, the U.S., France and Chile.

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