Rurelec makes new hydropower acquisition in Peru

Rurelec makes new hydropower acquisition in Peru

Rurelec has announced a further investment in Peru, acquiring the 255 MegaWatt Santa Rita run-of-river hydro development project. The news follows the December 2011 announcement that Rurelec, which has a strong power producing presence in Argentina as well as Bolivia, according to its website, bought a 50 per cent stake in Cascade Hydro Ltd, a newly formed hydroelectric power development company focused on run-of-river projects.

In addition to its existing 4 MW Canchayllo project, Cascade has now agreed to acquire the Santa Rita project for an initial US$10 million plus up to US$5 million if certain performance targets are met, Andre Lamberti said in a story for Proactiveinvestors United Kingdom. 

Canchayllo in the Junín Province to the east of Lima has already secured a power purchase agreement.  The project will take around 18 months to build and will require $8 million to finance construction.

“‘Run of river plants can operate for up to 80 years and therefore have strong annuity value, making them particularly attractive to pension funds. As they have no storage lakes created by dams their output can vary with the seasons, but their capital and maintenance costs are much lower,’ XCAP Securities analyst Tim Freeborn added.” 

Via Energy DIgger

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