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Denham Capital’s Jenner Renewables Announces Financial Close on 12 Solar Projects in Chile

29 January 2018

Independent power producer Jenner Renewables, a company backed by global private equity firm Denham Capital, has announced its financial close on 12 solar projects in Chile totaling 146 megawatts.

(BusinessWire) Jenner Renewables, an independent power producer focused on renewables in Latin America, announced that it has reached financial close on a portfolio of 12 solar projects in Chile totaling 146 megawatts (MW).

Built in two phases, the portfolio’s first phase totals 46 MW and is expected to reach commercial operations in Q3 2018 while its second phase, totaling 100 MW, is expected to reach commercial operations by Q1 2019.

“As an independent power producer operating throughout Latin America, we are very excited to contribute in such a significant way to the development of renewable energy in Chile. This country is at the forefront of implementing a carbon free electricity system by 2040 and our projects definitely support this strategy,” said Jorge Calvet, Founder and CEO of Jenner. “This is part of our renewable energy pipeline of 1,500 MW, which we intend to develop over the next 3-4 years in Chile, Mexico, Colombia, Argentina and other countries in the region.”

Located throughout the Sistema Interconectado Central (SIC) region, the solar projects are supported by Chilean Small Distributed Generators’ (PMGD) pricing mechanism that provides a long-term stream of stable cash flow to the projects. Projects under the PMGD scheme are connected to distribution networks and bring generation closer to consumption, thereby achieving a key strategic goal for the country’s power system. The PMGD pricing mechanism also ensures that while the price received by the generator is stable, it is also reflective of the overall cost of electricity in the system and as a result is cost neutral over the long term to system participants.

Arranged by Deutsche Bank, the financing structure for the portfolio enables Jenner to finance each separate project on a non-recourse basis under an aggregation facility as each project reaches ready-to-build stage.

Jenner’s solar portfolio will displace 120,000 tons of CO2 per year in Chile and produce 324 gigawatts (GW) per year, enough to power more than 43,000 Chilean households annually.

“Jenner’s 146 MW Chilean solar portfolio enhances Denham’s renewables footprint across Latin America, adding to the 485 MW of wind projects currently operating or under construction in our Rio Energy platform in Brazil,” said Denham Capital Managing Director Saurabh Anand. “In addition to Chile and Brazil, we continue to see significant growth opportunities in Mexico, Colombia and Argentina, and look forward to further building out our firm’s renewable portfolio in Latin America.”