Prime Energia SpA acquires 72-MWs of backup power for Chilean grid and expands credit facility to $450 million

Written By: Stratton Report
December 10, 2016

On December 10, Glenfarne Group, LLC announced that its sub, Prime Energia SpA, had acquired Empresa Eléctrica de Diego de Almagro S.A.

Per Glenfarne, Empresa Eléctrica de Diego de Almagro S.A. or Emelda is the owner of a backup power plant located in the Atacama Region of Northern Chile and will add 72-MWs of operational backup power to the Prime Energia portfolio.

Emelda is connected to the Chilean Central Interconnected System at the Diego de Almagro node.

Rodrigo Cienfuegos, CEO of Prime Energia remarked:

“The addition of Emelda to the Prime Energia business enhances its position as one of the leading providers of on-demand, backup capacity to the Chilean electrical grid, an essential component of any balanced electricity system. Prime Energia is committed to safe, reliable operations of its facilities. It is currently developing a Santiago-based network operations center which will allow monitoring and operations of all of its power plants from a central location and will ensure each plant is consistently available when dispatched by the Chilean grid operator.”

Concurrently, according to Glenfarne, Prime Energia closed a senior secured credit facility underwritten by Sumitomo Mitsui Banking Corporation and Natixis, a subsidiary of Groupe BPCE, expanding the facility up to $450 million.

In addition to Prime Energia’s existing Nueva Degan asset, an operating power plant permitted to operate at 50 MW, construction on a series of new greenfield backup plants is scheduled to commence in Q1 2017.

Glenfarne Managing Partner Brendan Duval observed: “The proliferation of intermittent renewable power sources such as wind, solar, and hydro, go hand-in-hand with increased backup power resources. Prime Energia is proud to support Chile’s strong renewables expansion agenda by providing critical capacity at times of grid & utility instability, outage or distress or when renewables cannot deliver consistent supply. We’re focused on leveraging deep power and renewables expertise across the Glenfarne family of companies including Prime Energia’s sister companies Fontus Hydro, LLC, a run-of-river hydropower business, and Integrated Fibre, LLC, a contracted biomass energy and wood processing business.”