X-Elio is seeking private PPAs in Argentina, Inframation has learned, as leading local developer Genneia closes its second such contract.
Sources said the Spanish renewable energy company, which prefers to use project finance, is exploring private PPAs for its first operational Argentinian installation.
Held by KKR Global Infrastructure Investors II (80%), X-Elio is understood to have a favorable view of Argentina despite the fact that other large-scale projects have until recently struggled to secure financing. The firm had considered participating in the RenovAr auctions, but decided to focus on its larger markets in more developed countries.
Meanwhile, Genneia said on 19 April that it had signed a private PPA with Oroplata, the local subsidiary of Canadian holding Goldcorp. Oroplata owns and operates the Cerro Negro gold project and is aiming to develop further mining facilities there. The project is located in the southern Santa Cruz province.
The 10-year PPA – for the 24MW Rawson expansion project, which became operational in 2017 – will take effect from May 2018. Currently, 60% of the energy from that project is locked into Genneia’s earlier private PPA with cement maker Loma Negra. It is unclear whether the remaining 40% will solely supply Oroplata, or if Oroplata has off-taking arrangements with other generators.
The Rawson expansion project is located around 6km southwest of the town of Rawson, in the Patagonian province of Chubut.
In 2017, Argentina approved legislation (MATER) permitting private PPAs. Industry sources said many of these could come from companies operating in provinces that allow mining.