Innergex completes acquisition of 68 MW Salvador solar photovoltaic project

Innergex Renewable Energy has completed the acquisition of the 68 MW PV Salvador SpA solar photovoltaic farm in Chile, as well as 11-year demand-based power purchase agreements (PPAs) covering a total electricity generation of 54,6 GWh/year.

Salvador and the PPAs were acquired from Etrion Chile SpA, Total Solar Latin America SpA and Holding, and Solventus Salvador SpA at a net purchase price of US$46.6 million and US$19.5 million, respectively.

The Atacama Desert, where Salvador is located in Northern Chile, has one of the highest levels of solar irradiation in the world. Salvador has several years of strong generation track record and is expected to generate 182.2 GWh annually, enough to power more than 70,000 Chilean households with clean energy. The asset is also expected to generate significant annual cash-on-cash returns of approximately 11% over the next decade and reach an Adjusted EBITDA of US$8.0 million in 2021. Salvador was commissioned in 2014 and delivers its total output to the Sistema Interconectado Central (SIC) power grid, where it receives a merchant market price. 

The transaction also includes the transfer of 11-year demand-based PPAs with Empresa Eléctrica ERNC 1 S.A., a power trading company, to Innergex. These PPAs, which are volume-regulated on a time block basis could benefit Energía Llaima SpA, a joint venture of which Innergex owns a 50% interest.

The total net purchase price of US$66.1 million will be financed entirely from Innergex revolving credit facilities. The project and the PPAs acquired are free of project debt.