Innergex to acquire 332MW onshore wind in Chile

Canada’s Innergex Renewable Energy has agreed to buy a portfolio of three operating wind farms in Chile with 332MW of installed capacity for a purchase price of US$686 million.

The company will buy 100% of the shares of Aela Generacion SA and Aela Energia SpA which own the 170MW Sarco Sarco (170MW) OnshoreFreirina, Atacama Region, Chile, Central & South America Click to see full details, 129MW Aurora (Aela Energía) Aurora (Aela Energía) (129MW) OnshoreLlanquihue, Los Lagos Region, Chile, Central & South America Click to see full details and 33MW Cuel Cuel (33MW) OnshoreLos Ángeles, Bío Bío Region, Chile, Central & South America Click to see full details wind farms.

The purchase price includes the assumption of US$386 million of existing debt.

Expected to close in the second quarter of 2022, the Aela deal is Innergex’s sixth acquisition in Chile’s renewable energy sector since 2018. They include deals to buy the 140MW Duqueco hydroelectric plant, 100% of renewables firm Energia Llaima and just last month the 50.6MW San Andres solar farm in northern Chile.

“The acquisition will extend our leadership position in Chile, an attractive energy market,” said Innergex President and CEO Michel Letellier.

Innergex highlighted that the energy from the three wind farms is sold to 25 distribution companies under power purchase agreements (PPAs), which have expiry dates between the end of 2036 and 2041, providing the company with an immediate source of cash-flow.

In addition, the company aims to use the size and diversity of its renewable energy portfolio in Chile to supply clean electricity around the clock to large industrial customers.

While the Aurora and Cuel wind farms are located in southern Chile, the Sarco wind farm is located in the northern Atacama region.

Innergex said it would finance the net purchase price through proceeds of C$150 million (US$118 million) from a concurrent bought deal equity and C$37 million earned from a private placement to an affiliate of Canadian energy firm Hydro Quebec and the rest from a refinancing of debt at the wind farms and Innergex’s existing projects in Chile which it plans to arrange in the coming weeks.