Grenergy’s Peru Power Play: US $150 Million Asset Sale Fuels Renewable Energy Expansion

In a recent announcement, Grenergy, a prominent player in the renewable energy sector, revealed its strategic move to sell significant wind and solar assets in Peru. The company finalized the sale of 77MW of wind assets situated in the Cajamarca department to ENGIE Energía Perú and 97MW of solar assets in the Arequipa department to Yinson Renewables. The combined value of these transactions stands at a substantial US$150 million, with potential additional earnings reaching US$154 million contingent upon the fulfillment of operational milestones.

The wind asset sale includes the operational 37MW Duna Huambos project and the 40MW Nairas projects, which are currently in the development phase. ENGIE Energía Perú, a major electricity producer in the country, sealed the deal with Grenergy for US$60 million, with a possibility of an extra US$3 million. Concurrently, the divestment of 97MW of solar assets originates from the Matarani solar project, boasting an annual production capacity of 260GWh. Yinson Renewables secured the transaction, which encompasses a turnkey contract for the plant’s construction, for a total of US$90 million, inclusive of meeting specified milestones.

Grenergy’s extensive presence in the Peruvian market since 2016, with corporate headquarters in Lima, underscores its robust portfolio comprising over 700MW of solar power projects in various stages of development. These recent asset sales align with Grenergy’s stated objective, announced during its Capital Markets Day, to annually divest between 350MW and 450MW of installed solar capacity, driving the company’s growth trajectory.

To realize its ambitious plans, Grenergy has earmarked an investment of €2.6 billion until 2026. A substantial portion, €1.5 billion, will be allocated towards the development of its solar project portfolio, while €800 million will be directed towards bolstering battery storage capabilities.

David Ruiz de Andrés, CEO of Grenergy, expressed confidence in the company’s ability to execute successful deals across diverse global markets, stating, “These operations reaffirm Grenergy’s ability to close deals in the different countries where we are present and allow us to advance in the objectives set out in our ambitious strategic plan, while generating value and allowing us to obtain resources to continue growing supported by our own financing.”