METLEN Energy & Metals SA, alongside its subsidiary Glenfarne Asset Company, LLC, has finalized an agreement for Glenfarne to acquire a substantial portfolio of battery and solar energy storage assets in Chile. This strategic acquisition encompasses operational solar projects with a total generation capacity of 588 megawatts (MW) and co-located battery energy storage system (BESS) centers that provide an impressive 1,610 megawatt-hours (MWh) of storage capacity. The construction of these BESS centers is currently underway and is anticipated to be completed within the next year.
The projects included in this portfolio offer a diverse geographic spread and multiple interconnection points across Chile’s National Electric System (SEN), thereby facilitating portfolio optimization. The total acquisition price is set at $815 million, which includes the assumption of existing debt and is contingent upon certain financing assumptions and customary adjustments. The transaction is expected to close once the BESS construction is completed, regulatory approvals are obtained, and other customary conditions are satisfied.
Evangelos Mytilineos, CEO of METLEN, remarked, “This is a historic transaction for METLEN, as we pave the way for the growth of M Renewables, our renewable energy division. We identified the potential of the Chilean renewable energy market in 2020 and successfully navigated market challenges. This agreement not only strengthens our partnership with Glenfarne but also sets the stage for enhanced cooperation in various mutual interests.”
Brendan Duval, Founder and CEO of Glenfarne, emphasized the significance of the deal: “This transaction marks a key step in Glenfarne’s commitment to expanding our presence in Chile’s renewable energy sector. We are excited to collaborate with METLEN as we invest in infrastructure that supports Chile’s energy transition.”
As the demand for renewable energy continues to grow, the importance of battery energy storage systems becomes increasingly critical in modern energy markets. METLEN’s acquisition aligns with its Global Asset Rotation Program, which focuses on renewable energy projects and underscores the company’s ability to handle complex transactions on a global scale.
In facilitating this landmark transaction, METLEN engaged Astris Finance as its financial advisor, while Milbank LLP and Larrain y Asociados Ltda. provided legal counsel. This collaboration showcases METLEN’s commitment to leveraging expert support to ensure successful execution in the renewable energy landscape.
This acquisition marks a significant milestone for METLEN Energy, reinforcing its position as a leader in the renewable energy sector. By expanding its portfolio in Chile, METLEN not only enhances its operational capabilities but also demonstrates its dedication to fostering sustainable energy solutions. As the world shifts towards cleaner energy, METLEN’s strategic initiatives will play a crucial role in shaping the future of renewable energy in Latin America.
