US private equity investment firm Conduit Capital Partners and Latin American development bank CAF have acquired an 81% stake in two PV plants in southern Peru with a total capacity of 40MW.
Spanish PV project developers Solarpack and Gestamp Solar completed the 20MW Tacna PV facility earlier this year while the 20MW Panamericana PV plant is scheduled to begin operations in December.
Michelle Haigh, Vice President at Conduit, said: “We are pleased to continue to build on our long history of successful investment in Peru with the acquisition of these exciting renewable power projects. We are committing capital, development and operating expertise to complete the projects and position the assets as they begin operations.”
Eleonora Silva, Director of CAF for Peru, added: “As one of the largest photovoltaic plants connected to a public Latin American power grid, this is an emblematic project for our institution. This investment is also representative of CAF’s ongoing strategy to promote the use of renewable energy and demonstrates our commitment with the sustainable development of Latin America.”
The total value of the transaction has not been disclosed. However, Conduit revealed that the two projects had required an investment of approximately US$210 million. In June the Overseas Private Investment Corporation (OPIC) awarded Conduit with US$185 million to finance the construction and operation of the Tacna and Panamericana power plants. The transaction represents Conduit’s first solar investment.
Development of the two projects was given the go ahead after they were selected during Peru’s 2010 renewable energy auction. When the Panamericana plant is finalised, the two facilities will generate almost 100 million kWh of electricity annually which will be sold to Peru’s national grid under 20-year power purchase agreements.