IPPToday #125: Financing secured for 300 MW wind projects in Chile
- Mainstream Renewable Power
- Apollo Investment Corporation
- Inter-American Development Bank
- Inter-American Investment Corporation (IIC)
- Mitsubishi UFJ Financial Group (MUFG)
- Sumitomo Mitsui Banking Corporation (SMBC)
- Korean Development Bank
- KfW Group
- Banco Santander
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Aela Energía, a joint venture of Actis (60%) and Mainstream Renewable Power (40%), has secured project financing for the construction of two wind farms to be located in the Atacama and Los Lagos regions of Chile. Together the projects will contribute installed capacity of 299 MW to the Central Power Grid System.
Mainstream Renewable Power has secured US$50 million in mezzanine finance from funds managed by affiliates of Apollo Global Management, LLC, a leading global alternative investment manager, to partially fund Mainstream’s equity investment. This adds to the US$410 million that Aela Energía obtained in August 2017, bringing the projects to financial close and allowing construction to proceed.
Project financing was secured through the Inter-American Development Bank and its member Inter-American Investment Corporation, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, Korean Development Bank, Caixa and KfW, plus a VAT credit line provided by Banco Santander.
The projects concerned are the Aurora and Sarco wind farms. The Aurora project is located in Llanquihue, 15km from the Llanquihue municipality in the Los Lagos region. It will have 43 wind turbines that will add an installed capacity of 129 MW, equivalent to the power consumption of about 195,000 homes. An underground electrical network will also be constructed to transport power from the wind turbines to a booster substation. Then, the power generated in Aurora will be injected to the Central Power Grid System, through a tap-off connection to the trunk transmission line 220kV “Rahue-Puerto Montt” that crosses the wind farm site and is owned by Transelec.
The Sarco wind farm is located in Freirina commune, approximately 70 km southeast of Vallenar city, in the region of Atacama. It will have 50 wind turbines that will add an installed capacity of 170 MW, equivalent to the power consumption of about 260,000 homes. The power produced will feed into the Central Power Grid System, through an overhead power line of 73 km. that will join the wind farm with the Maitencillo substation.
The wind farms are expected to begin commercial operations in the second half of 2018.
These projects will support the energy awarded to the company by Chile's National Energy Commission in an auction in 2015. Aela was awarded 64% of total tendered energy, acquiring a commitment to supply 768 GWh/year to regulated customers for 20 years.
Aela’s current portfolio also includes the Cuel wind farm, which is located in the Biobío region and has been in operation since 2014. With 22 turbines and 33 MW installed capacity, Cuel brings the total capacity of Aela's portfolio to 332 MW. The company's goal is to produce 600 MW in Chile.