The facility, which operates on a merchant basis, has a contract to sell Non-Conventional Renewable Energy (“NCRE”) credits linked to its electricity generation to a major energy producer established in Chile until 2034.
“Through this transaction, Innergex is continuing to implement its growth in Chile,” said Michel Letellier, President and Chief Executive Officer of Innergex. “The acquisition of San Andrés will bring operational synergies possibilities with our Salvador solar facility located in the region. In addition, San Andrés has the potential for the development of a battery energy storage system and, since the connection to the grid is robust, it also offers opportunities for future expansions.”
Becoming Innergex’s third solar facility in Chile, San Andrés is expected to produce a gross estimated long-term average of 118.9 GWh per year. The facility is expected to reach targeted Revenues[1] of US$5.5 million (CAN$7.0 million) in its first full year, of which US$1.3 million (CAN$1.7 million) is derived from the sale of the NCRE of the facility under contract until 2034 and US$0.8 million (CAN$1.0 million) from the capacity payment.
The total purchase price of US$25.7 million (CAN$32.7million) net of cash, which is equivalent to the enterprise value as the project is free of debt, was fully financed with cash on hand in Chile and corporate revolving credit facility draws.
