Yinson Renewables Acquires 97 MWp Matarani Solar Project in Peru from Grenergy Renewables

Yinson Renewables Acquires 97 MWp Matarani Solar Project in Peru from Grenergy Renewables. Photo: Pexels

Malaysia-based Yinson Renewables has completed the acquisition of the 97 MWp Matarani solar project in Peru from Grenergy Renewables, an international independent power producer, developer, and engineering, procurement, and construction company. The project is located in the Mollendo desert in the Arequipa region, one of the world’s highest solar irradiation areas. Most of the project’s energy has been contracted through a power purchase agreement (PPA) with a bankable off-taker for the next 15 years, read a press release by Yinson.

Project Matarani is currently under construction and will enter commercial operation by the third quarter of 2024. In addition to the SPV acquisition for $25 million, Grenergy is providing a full turnkey EPC contract for the construction of the project and is entitled to further earnouts which are collectively valued at $65 million. Grenergy will also provide the operation and maintenance service for the plant for the first two years.

Once in operation, Project Matarani will generate about 260 GWh of renewable energy into the Peruvian grid annually which will be enough to satisfy the energy needs of about 62,000 Peruvian households and prevent the emission of more than 56,000 tonnes of CO₂ per year, claimed the company.

On the acquisition, Yinson Renewables Chief Executive Officer, David Brunt, said, “The acquisition and construction of Project Matarani is a very important milestone for Yinson Renewables as a significant construction project in Peru and Latin America – a country and region that we consider of key focus area. Grenergy is a strong partner with a solid experience and expertise in the region.”

In addition to Project Matarani, Yinson Renewables also controls Project Majes, located in the proximity of Project Matarani, and is reviewing several other opportunities in the country. Matarani will be Yinson Renewables’ first operating project in the South American region, with a pipeline of close to 1 GW expected to be built in the next three to five years. The project is slated to be Yinson Renewables’ fourth large-scale IPP project to reach commercial operations. Yinson Renewables also owns and operates the Rising Bhadla 1 & 2 plants and the Nokh Solar plant in India.