Latin American energy developer Union Energy Group has acquired hydropower project owner Generacion Andina as part of the its expansion into Peru.
Generacion Andina, previously held by Germany's Energie Baden-Wurttemberg (EnBW), is owns six hydroelectric plants that represent a total of 55.2 MW-worth of cumulative installed capacity.
Two projects are already completed and are operating with a 20-year, government-backed power purchase agreement already in place, while four others are in various stages of development. Combined, Union Energy said the portfolio will represent a total investment of US$145 million.
The next two to be constructed are the 8.4-MW El Carmen and 19-MW 8 de Agosto projects. HydroWorld.com reported that Generacion Andina had awarded a $77.9 million contract to Spanish company Sacyr for their construction earlier this year.
"Investing in run-of-river hydro projects such as those developed by Generacion Andina is for us a compelling way to gain exposure to Peru," Union Energy Group director Francisco Roque de Pinho said. "These assets combine long-term, inflation-linked, dollar-denominated income, with downside protection and equity-like upside potential."
The acquisition adds to the company's existing 1 GW development portfolio in Peru, Union Energy said.
Union Energy was formed in 2011 by the Union Group to invest in, develop, build and operate power generation projects in Latin America.
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