Norway’s Statkraft Norfund Power Invest (SN Power) completed acquisition October 17 of Peru hydropower utility Empresa de Electricidad de los Andes S.A. (Electroandes) from PSEG Global of the United States.
SN Power paid a total of US$390 million, including existing debt of US$106 million to PSEG, a unit of U.S. utility Public Service Enterprise Group, which had opened the Peru asset to purchase offers after it had received ï¿½significant unsolicited interest in the asset.ï¿½ (HNN 9/20/07)
Acquisition of Electroandes, which had been Peru’s sixth largest generator, now makes SN Power the fifth largest generator in the country.
Electroandes owns four hydroelectric plants totaling 183 MW: 12-MW Pachachaca, 9-MW La Oroya, 54-MW Malpaso, and 108-MW Yaupi, located in Junin and Cerro de Pasco departments. Electroandes’ system also includes 750 kilometers of transmission lines, substations, a control center, and telecommunications facilities.
Electroandes also has rights to develop a 100-MW expansion of Yaupi and a 150-MW greenfield hydro plant. It has two other proposed projects, 80-MW El Cano and 30-MW Uchuhuerta in the Paucartambo and Huachon river basins.
ï¿½We will need to create one unified organization out of the two existing today,ï¿½ Executive Vice President Nils Huseby of SN Power Latin America said October 19. ï¿½This means that we will undertake an integration process to streamline both our operations, systems, policies and procedures, and our commercial activities.ï¿½
SN Power’s Empresa de Generacion Electrica Cahua (Cahua S.A.), which it acquired from NRG Energy of the U.S. in 2003, owns 11 hydro plants totaling 90 MW and a 25-MW thermal plant. The hydro plants are the 5.3-MW Arcata group of 3.8-MW Misapuquio, 600-kW San Antonio, 600-kW San Ignacio, and 300-kW Huaylacho; 43-MW Cahua on Pativilca River; 37-MW Gallito Ciego; and the 4.7-MW Pariac group of 200-kW Pariac 1, 400-kW Pariac 2, 300-kW Pariac 3A, 800-kW Pariac 3N, and 3-MW Pariac 4 on the Pariac River.
Cahua S.A. also has been evaluating two hydro sites totaling 200 MW upstream of the Cahua plant on the Rapay River and two new Pariac sites, Pariac 5 and 6, totaling 7.7 MW. In July, Cahua S.A. acquired control of Empresa de Generacion Electrica Cheves, which is developing the 158.6-MW Cheves 1 hydroelectric project in Churin District and is studying Cheves 2 and 3 sites. (HNN 7/12/07)
Huseby said a new management team is to be in place by the end of the year. He said SN Power Peru has a significant portfolio of promising development opportunities including those it already was pursuing, such as the Cheves, Copa, and Rapay projects, plus the Yaupi expansion, El Cano, and Uchuhuerta projects acquired with Electroandes.
ï¿½I think it is easy to see how important Peru is to SN Power,ï¿½ Huseby said. ï¿½We have great confidence in this market and believe in its continued prosperity and growth potential.ï¿½