LONGUEUIL, QC, Jan. 28, 2022 /CNW/ - Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") announces the acquisition of the 50.6 MW San Andrs solar farm located in the Atacama desert in Northern Chile for a total purchase price of US$25.7 million (CAN$32.7 million), net of cash. 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 Andrs will bring operational synergies possibilities with our Salvador solar facility located in the region. In addition, San Andrs 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 Andrs is expected to produce a gross estimated long-term average of 118.9 GWh per year. The facility is expected to reach targeted Revenues1 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.
About Innergex Renewable Energy Inc.
For over 30 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity. As an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, Innergex is convinced that generating power from renewable sources will lead the way to a better world. Innergex conducts operations in Canada, the United States, France and Chile and manages a large portfolio of high-quality assets currently consisting of interests in 80 operating facilities with an aggregate net installed capacity of 3,152 MW (gross 3,852 MW) and an energy storage capacity of 150 MWh, including 40 hydroelectric facilities, 32 wind farms and 8 solar farms. Innergex also holds interests in 9 projects under development, two of which are under construction, with a net installed capacity of 171 MW (gross 209 MW) and an energy storage capacity of 329 MWh, as well as prospective projects at different stages of development with an aggregate gross capacity totaling 7,281 MW. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and to distribute a stable dividend.