Built in two phases, the portfolio’s first phase totals 46 MW and is expected to reach commercial operations later this year while its second phase, totaling 100 MW, is expected to be online early in 2019.
“As an independent power producer operating throughout Latin America, we are very excited to contribute in such a significant way to the development of renewable energy in Chile,” said Jorge Calvet, founder and chief executive of Jenner.
“This country is at the forefront of implementing a carbon free electricity system by 2040 and our projects definitely support this strategy. This is part of our renewable energy pipeline of 1500 MW, which we intend to develop over the next three-to-four years in Chile, Mexico, Colombia, Argentina and other countries in the region.”
Located throughout the Sistema Interconectado Central region, the solar projects are supported by Chilean Small Distributed Generators’ (PMGD) pricing mechanism that provides a long-term stream of stable cash flow to the projects.
Projects under the PMGD scheme are connected to distribution networks and bring generation closer to consumption, thereby achieving a key strategic goal for the country’s power system. The PMGD pricing mechanism also ensures that while the price received by the generator is stable, it is also reflective of the overall cost of electricity in the system and as a result is cost neutral over the long term to system participants.
Arranged by Deutsche Bank, the financing structure for the portfolio enables Jenner to finance each separate project on a non-recourse basis under an aggregation facility as each project reaches ready-to-build stage.
Jenner is a portfolio company of funds managed by Jenner Renewables is a portfolio company of funds managed by Denham Capital.
Denham Capital Managing Director Saurabh Anand said: “Jenner’s 146 MW Chilean solar portfolio enhances Denham’s renewables footprint across Latin America, adding to the 485 MW of wind projects currently operating or under construction in our Rio Energy platform in Brazil.
“In addition to Chile and Brazil, we continue to see significant growth opportunities in Mexico, Colombia and Argentina, and look forward to further building out our firm’s renewable portfolio in Latin America.”