Grenergy closes financing for 36.8 MW of Peruvian wind farms

Wind turbines at work. Author: Nick Cross. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.

June 5 (Renewables Now) - Grenergy Renovables SL (BME:GRE) announced Wednesday it has closed a USD-40-million (EUR 35.5m) financing to support the construction of two wind farms in Peru.

The Spanish renewable energy firm secured the project finance with Madrid-based Instituto Oficial de Credito (ICO) and Latin American development bank Banco de Desarrollo de America Latina (CAF).

The wind farms, with their combined capacity of 36.8 MW, are named Duna and Huambos. They will be located in Chota province in the Peruvian region of Cajamarca. Sinia Renovables SCR SA, a renewable energy unit wholly-owned by Spanish lender Banco de Sabadell SA (BME:SAB), has taken a 10% stake in both wind farms.

Siemens Gamesa Renewable Energy SA (BME:SGRE) will be in charge of the construction of Duna and Huambos, which will begin in the second quarter of 2019. Grenergy estimates that the wind farms will come online a year later.

The Peruvian ministry of energy and mines will purchase the estimated annual output of more than 165,000 MWh at USD 36.8-USD 37.7 per MWh for a period of 20 years.

Grenergy calculates that the wind farms will generate revenues of USD 6.4 million during the first full year of operation. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) are projected to reach USD 5 million in the same time period.

(USD 1.0 = EUR 0.89)

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Sladjana is the newest addition to the Renewables Now team. She has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry.

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