May 15 (Renewables Now) - Canada-based Innergex Renewable Energy Inc (TSE:INE) has acquired the 68-MW Salvador photovoltaic (PV) plant in Chile along with a number of 11-year local demand-based power purchase agreements (PPAs).
The transaction, valued at a total of USD 66.1 million (EUR 61.1m), was made with Etrion Chile SpA, Total Solar Latin America SpA and Holding, and Solventus Salvador SpA. Specifically, Innergex paid USD 46.6 million for the solar park and USD 19.5 million for the PPAs.
Located in the Atacama Desert, the Salvador solar park is expected to generate 182.2 GWh annually, enough to meet the demand of over 70,000 local households. Salvador is also expected to generate some 11% of annual cash-on-cash returns over the next decade and reach an adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of USD 8 million in 2021.
The PPAs, on the other hand, cover a total electricity generation of 54.6 GWh per year with power trading company Empresa Electrica ERNC 1 SA. Innergex believes that these agreements could benefit Energia Llaima SpA, a joint venture in which it holds a 50% interest, the company noted.
(USD 1 = EUR 0.925)