Spain-based independent power producer Grenergy Renovables SA (BME:GRE) announced today it has entered the Argentine market by acquiring the 24-MW Kosten wind project.
The company estimates it will need to spend USD 40 million (EUR 34m) on the project. The completed plant is seen to generate over USD 7 million in earnings before interest, tax, depreciation and amortisation (EBITDA) for its first full year.
Grenergy noted that it has paid for the asset in US dollars to avoid exposure to the fluctuations of the Argentine peso. It did not mention the exact size of the deal.
The company is currently working on closing financing for the scheme and expects to conclude the process by the end of the year. Grid connection of the wind farm is scheduled for the second half of 2018.
The project is located in Pampa del Castillo near the city of Comodoro Rivadavia in the Patagonian province of Chubut. It was awarded in round 1 of the country’s RenovAr programme a year ago. The wind farm will be selling its output at a tariff of USD 69.50 per MWh in its first year of operation.