Pattern ups stake in El Arrayan
Pattern Energy has increased its ownership interest to 70% in the 115MW El Arrayan wind farm located on the coast of Chile 400 miles (644km) north of the capital Santiago.
Pattern Energy acquired AEI’s 38.5% stake in the project.
Pattern Energy paid a $45.25m purchase price to AEI from available cash on hand and assumed certain obligations, consisting principally of AEI’s proportional share of project debt. As of 31 May, AEI’s proportional share of the $224.8m non-recourse project debt was $87m.
Antofagasta Minerals (AMSA) owns the remaining 30% minority stake in Chile’s largest wind facility.
The deal adds 44MW to Pattern Energy’s portfolio, now at 1.479GW of owned capacity.
“With this acquisition we are increasing our cash flow from the project while expanding our platform in the Chilean market which has a strong, stable economy and a growing demand for renewable resources,” says Mike Garland, chief executive of Pattern Energy.
“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,” he adds.
Pattern Energy operates the project, which sells approximately 70% of its output to Minera Los Pelambres through a long-term fixed-for-floating hedge. The balance of power is sold into the Chilean spot market at the prevailing price at the time of sale.
AMSA is the controlling party of Minera Los Pelambres,