Innergex secures $156 million for storage, refinancing in Chile

Canadian independent power producer (IPP) Innergex has secured $156 million in financing for renewable energy and battery storage assets in Chile, including support for two standalone battery energy storage systems and the refinancing of existing wind, hydro, and solar projects.

DNV said it supported Innergex in closing a $156 million refinancing and new financing package for a portfolio of renewable energy and energy storage assets in Chile. The transaction includes $114 million to develop two standalone battery energy storage systems and $42 million to refinance operating wind, run-of-river hydropower, and solar-plus-storage facilities.

According to law firm White & Case, which advised Sumitomo Mitsui Banking Corp. (SMBC), the two battery projects will be located in northern Chile and will have a combined capacity of 62 MW with five hours of storage duration.

Canada-based Innergex worked with DNV on a market analysis designed to help lenders assess the commercial risks associated with the portfolio. SMBC Group was among the financiers that used DNV’s independent assessment before committing funding.

DNV said the new storage projects are intended to help reduce renewable energy curtailment in Chile by storing excess solar generation during the day and shifting it to evening periods, when electricity demand and system needs typically increase. The battery systems are also expected to provide ancillary services that support grid stability and security.

The consultancy said its work included marginal spot price forecasts, capacity revenue projections, curtailment and transmission analysis, modeling of power supply contracts with distribution companies, and a dedicated assessment of the storage assets included in the portfolio.

Brice Le Gallo, vice president and regional director for Southern Europe, the Middle East, Africa, and Latin America at DNV Energy Systems, said the rapid expansion of renewable generation and energy storage in Chile is raising new questions about project bankability. He said market due diligence is increasingly being used by developers and lenders to evaluate price volatility, curtailment exposure, and regulatory risks associated with renewable energy and storage investments.

From pv magazine LatAm