Business Irish

Friday 28 July 2017

GE set to join with O'Connor in Chile

Photo: Getty Images
Photo: Getty Images

Gram Slattery

GE is in talks to provide turbines for wind farms to be developed by Eddie O'Connor's Mainstream Renewable Power throughout Chile, according to sources, who requested anonymity as the matter is private.

GE will likely take an equity stake in the projects, which would be financed with a mixture of equity and debt, according to one source.

The wind farms being set up would require a total investment of up to $1.6bn (€1.46bn), Mainstream has said.

Mainstream declined to comment, and GE said it did not comment on rumours or speculation.

Renewable energy is booming in Chile, which has abundant wind and sun. Last year, European renewables firms, including Mainstream, won big in a large auction to supply Chile with power for two decades, beginning in 2021.

There have been setbacks, such as delays in the construction of transmission lines and flagging demand from Chile's copper mines. Many of the auction winners are seeking deep-pocketed partners as they embark on project construction.

A Chile partnership would be the second between Mainstream and GE. Last year, the two said they were teaming up for over $2bn of investments in wind power in Vietnam.

Mainstream will build seven utility-scale wind farms to provide some 986 megawatts of power at a relatively low price of around $40 per megawatt-hour, according to the terms of the purchase agreement in last year's auction.

The sources did not specify if the GE partnership would apply to all seven wind farms. (Reuters)

Irish Independent

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