Tuesday 17 October 2017

Mainstream vehicle lands 265MW project

Eddie O'Connor, Chief Executive of Mainstream Renewable Power. Photo: Tom Burke
Eddie O'Connor, Chief Executive of Mainstream Renewable Power. Photo: Tom Burke

Paul O'Donoghue

A consortium led by Irish developer Mainstream Renewables is planning to spend about $600m (€543m) constructing two large windfarms in Chile.

Aela Energía, a joint venture between Mainstream and London-based private equity firm Actis, yesterday was awarded contracts to build and operate two wind projects, with a combined generation capacity of 265 megawatts.

It is estimated that the two windfarms could power about 400,000 Chilean homes. Aela is 40pc owned by Mainstream and 60pc owned by Actis.

The company was awarded the 20-year contracts by the Chilean National Energy Commission under a bidding process which saw 31 companies compete for 1,200 gigawatt hours of energy. Aela won 65pc of the tender. Speaking to the Irish Independent, Mainstream chief executive Eddie O'Connor said: "The announcement is significant because we took on coal firms and won. We have shown that renewables are cheap and are viable in the developing world."

He added: "It will cost about $600m for construction, if we got a 70:30 debt to equity split we would be doing well. We will hopefully have it [funding] together in the next six months."

Mainstream will be responsible for raising 40pc of the equity for the project.

Irish Independent

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