Chile’s Colbún announces purchase of local renewables player

Chilean power generator Colbún agreed to buy 100% of renewables player Inversiones Latin America Power (ILAP).

In a regulatory filing, Colbún said via the US$400mn transaction it would acquire two operational wind parks: 193MW San Juan in Atacama region and 46MW Totoral in Coquimbo region.

Investment bank BTG Pactual was a deal adviser. 

Colbún said in a statement: “This acquisition will allow Colbún to continue strengthening its presence in the north of the country, where it already operates the Diego de Almagro Sur photovoltaic and battery park in Atacama region (230MW installed capacity and 32MWh of storage), and where it is in the final stages of constructing the Horizonte wind farm (816 MW) in Antofagasta region. 

“This operation is also consistent with the significant supply contracts that Colbún has secured with large mining and industrial clients in that area of the country.”

The deal is subject to regulatory approval.

A US$200mn San Juan expansion project, which includes battery storage, was under review, according to environmental review agency SEA. 

Present in Chile since 2011, ILAP underwent a restructuring of around US$400mn of debt after entering financial difficulties.

Generators have been impacted by curtailment and price decoupling, factors particularly hurting pure-play renewables firms with power-purchase agreements. Rising system costs, along with price stablization legislation impact, have also pressured some companies. 

Hydrological conditions improved last year, helping reduce the variance between marginal costs at different points on the grid.