Actis said Friday it committed US$290 million for a 60% stake in Aela Energía. Mainstream Renewable Power, the global wind and solar developer, will own 40% of the asset. The total value of the project is US$1.4 billion including debt, Actis said. Aela Energía is a renewable energy development set that looks to become Chile’s largest wind and solar energy provider.
Santiago and London, 7 June 2013: Actis, the pan-emerging markets private equity firm, today announces that it has committed US$290 million for a 60% stake in Aela Energía, a renewable energy development set to become Chile’s largest wind and solar energy provider. Actis is investing alongside Mainstream Renewable Power, the global wind and solar developer, which will own 40% of the asset. The total value of the project is US$1.4 billion including debt.
Aela Energía will increase the country’s renewable energy capacity by 3.6%, providing enough clean energy to power more than 131,000 homes.
With GDP growth running at around 6% a year, Chile’s energy demands are increasing rapidly. The Chilean government continues to be extremely supportive of innovative green energy developments which unlock the country’s formidable renewable resources.
Since 2002 Actis has deployed in excess of US$1 billion in 25 energy transactions and has an impressive track record of energy investments in Latin America, including the Cerro de Hula project, which is the largest wind farm in Central America. Actis also manages Energuate, Guatemala’s national electricity distribution company.
Actis’s experience in Latin America extends to meeting the needs of the fast-growing consumer class, and includes investments in higher education, household goods and financial services. It was named Latin American Private Equity Investor of the Year in 2011 (PEI magazine).
Paul Fletcher, Senior Partner at Actis, said:
“Chile is a country on the move, with a healthy, fast-growing economy and a clear vision of its future energy needs. We are delighted to support its push towards extending and diversifying its renewable energy footprint, and we have drawn on our deep understanding of both Latin America and the energy sector for this, our first investment in Chile. Mainstream is a trusted and experienced partner and together we can make this a great success”
Commenting on the transaction Mainstream Renewable Power Chief Executive Eddie O’ Connor said:
“This is the ideal platform for Mainstream to accelerate the delivery of the first phase of our 3,500 megawatts of wind and solar projects in Chile. Mainstream has a global pipeline of over 17,000 megawatts of wind and solar projects globally and this project is something we may wish to replicate across our other markets. We are delighted to be working with such a highly experienced and forward thinking partner as Actis.”
Notes to editors
Mainstream and Actis have already worked together, most recently in 2012, when they signed a commitment to develop three renewable energy assets in South Africa.
Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$5.2 billion funds under management. Combining the expertise of over 120 investment professionals on the ground in nine countries, Actis identifies investment opportunities in three areas: private equity, energy and real estate. The firm has a strong presence in Latin America and in the energy sector. Since 2002 Actis has deployed in excess of US$1 billion in 25 energy transactions, across 19 countries, generating 13,301MW capacity and serving 1.8 million customers. It operates under the highest standards of ESG in the industry and helped the UN define the code for responsible investing. Actis is proud to actively and positively grow the value of those companies in which it invests and in so doing contribute to broader society.
Mainstream Renewable Power is one of the world’s leading independent developers of renewable energy projects. With a development pipeline of over 17GW globally it is currently constructing solar and wind farms across Ireland, South Africa, Chile and Canada.
As Europe’s leading independent offshore wind developer Mainstream is developing just under 8GW of offshore wind projects in England, Scotland and Germany with 4.45GW of secured grid connection for these offshore projects.
In Chile, Mainstream’s local team has been developing an advanced portfolio of more than 3,500 megawatts of wind and solar projects since 2008 and is currently constructing the 33MW Negrete Cuel wind farm.
It employs more than 160 experienced staff across four continents with offices in Berlin, Cape Town, Chicago, Dublin, Glasgow, Johannesburg, London, Santiago and Toronto.