British private equity firm, Denham Capital has announced that its Spain-based renewable energy unit, Jenner Renewables has reached financial close for 12 PV power projects totaling 146 MW, which will be developed in Chile.
The first phase of the portfolio, the company said, will have a capacity of 46 MW and is scheduled to come online in the third quarter of this year, while the second phase, which has a combined capacity of 100 MW, is planned to be operational by the first quarter of 2019.
All of the projects, Jenner stressed, will be built under Chile’s PMGD Program for distributed generation, a scheme open to projects up to 9 MW, which will probably be the main driver of this year’s PV growth in Chile, as the number of projects under the scheme has been increasing considerably over the past months.
“Projects under the PMGD scheme,” said Jenner in its statement, “are connected to distribution networks and bring generation closer to consumption, thereby achieving a key strategic goal for the country’s power system.” The PMGD pricing mechanism, also guarantees that while the price received by the generator is stable, “it is also reflective of the overall cost of electricity in the system, and as a result is cost neutral over the long term to system participants,” the company added.
All of the plants will be connected to the power network Sistema Interconectado Central (SIC), which is Chile’s grid with the highest level of power consumption and highest prices for consumers.
Jenner added that the financing structure of the portfolio was arranged by Deutsche Bank, and that this structure will finance each separate project on a non-recourse basis, under an aggregation facility as each project reaches a ready-to-build stage. More details on the amount of total investments, however, were not disclosed.
“In addition to Chile and Brazil, we continue to see significant growth opportunities in Mexico, Colombia and Argentina, and look forward to further building out our firm’s renewable portfolio in Latin America,” said Denham Capital managing director, Saurabh Anand.