Grenergy cuts deals to sell 174 MW of solar, wind assets in Peru

Spanish renewables company Grenergy Renovables SA (BME:GRE) on Tuesday said that it has struck two deals for the sale of 174 MW of its wind and solar power assets in Peru, continuing to shed certain holdings to fund growth plans.

The transactions are worth a total of USD 150 million (EUR 138.3m), with the potential to increase to USD 154 million thanks to earn-outs.

Grenergy said it had closed the sale of its 97-MWp Matarani solar project to Malaysian green power producer Yinson Renewables for USD 90 million. The deal included a turnkey contract for the construction of the solar farm and an earn-out of approximately USD 1 million contingent upon the plant’s power production revenues until December 31, 2024.

Located in a desert in the Arequipa department, the Matarani solar farm stands to produce around 260 GWh annually. Part of its annual production will generate revenues under a 15-year power purchase agreement (PPA) with Enel Generacion Peru.

The plant is expected to start commercial operation in the second quarter of 2024. Grenergy will provide operation and maintenance services for Matarani during the first two years.

Grenergy also announced the sale of its 37-MW Duna Huambos operational wind farm complex and the Naira I and II under-development wind projects totalling 40 MW. The buyer is Peruvian power producer Engie Energia Peru SA (LIM:ENGIEC1), which disclosed this deal late last year without giving details.

The transaction is valued at USD 60 million, with the possibility of an additional USD-3-million earn-out. The approval of Peru’s National Institute for the Defence of Competition and Protection of Intellectual Property is required for this transaction, which is expected to be completed in the first half of 2024, Grenergy said.

The latest deals are part of Grenergy’s asset rotation strategy, which kicked off in Spain last year with the sale of several solar power assets. The company has set out to invest EUR 2.6 billion until 2026, the bulk of it destined for solar power and battery storage development.

CEO David Ruiz de Andres said that deals such as these will allow Grenergy to obtain resources to continue growing backed by own financing.

(USD 1.0 = EUR 0.922)

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