Innergex closes $49.5m Chilean storage financing

April 24, 2023

Innergex Renewable Energy has closed a US$49.5 million (CAN$66.7 million) non-recourse construction financing with SMBC for the San Andrés battery energy storage project in northern Chile.

The project consists of 35 MW/175 MWh (five hours) of storage capacity located on the site of Innergex’s existing San Andrés 50.6MW solar facility in the Atacama desert.

The total construction costs of the project are estimated at US$61.9 million (CAN$83.4 million) and will be mainly financed with a US$49.5 million (CAN$66.7 million) two-year non-recourse bridge loan. The construction bridge loan is expected to be repaid with the proceeds from a future long-term non-recourse financing after the facility reaches commercial operation. The remaining US$12.4 million (CAN$16.7 million) will be financed from Innergex’s revolving credit facilities.

Work on-site commenced in February 2023 and is “progressing well with the required permits in place”, a statement said.

The project will feature Mitsubishi Power’s Emerald Storage Solution.

The San Andrés battery storage facility is expected to generate annual revenues of approximately US$8.0 million (CAN$10.8 million) in its first full year of operation, while operating, general and administrative expenses are expected to reach US$0.4 million (CAN$0.5 million) during the same period.