Pattern Energy Group has completed acquistion of 38.5% net ownership interest in the El Arrayán Wind project from AEI in Chile.
Completed earlier this month, the project is located approximately 400km north of Santiago on the coast of Chile and is now fully operational.
As part of an agreement, Pattern Energy paid a $45.25m purchase price to AEI from available cash on hand and assumed certain obligations, including principally of AEI’s proportional share of project debt.
The project’s electricity produced annually will offset more than 300,000 metric tons of carbon dioxide, which is the equivalent to the annual carbon footprint of an estimated 70,000 Chileans, while conserving enough water to meet the needs of more than 11,000 Chileans, according to statistics from the International Energy Agency.
Approximately 75% of the project’s expected output will been sold to Minera Los Pelambres, copper mines form, as part of a long-term fixed-for-floating accord while the remaining output will be sold in the Chilean spot market at the prevailing market price at the time of sale.
The El Arrayán, considered to be Chile’s largest commercial wind power project, will be connect to the Sistema Interconectado Central’s 220kV transmission system.
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By GlobalDataWith the transaction increases, Pattern Energy increases its ownership in El Arrayán Wind to 70% while the remaining 30% minority stake is owned by Antofagasta Minerals SA (AMSA).
Pattern Energy CEO Mike Garland said that the acquisition increases Pattern Energy’s cash flow from the project and expands platform in the Chilean market which has a strong, stable economy and a growing demand for renewable resources.
"By harnessing Chile’s strong coastal winds, El Arrayán will be the largest producer of wind power in South America, helping Chile meet its goal of generating 20% of its energy from renewable sources by 2025," Garland added.
