Pattern Energy Group LP (Pattern) announced it has signed 20-year renewable power sale and energy services agreements for its El Arrayan Wind project in Chile. The agreements were completed with Minera Los Pelambres, a mining company controlled by Antofagasta plc, whose mining division Antofagasta Minerals S.A. (AMSA) will also have an option to acquire a 30% stake in the project. The 115 megawatt (MW) El Arrayan project, being developed by Pattern, is located approximately 400 km north of Santiago on the coast of Chile. Once completed, the El Arrayan wind farm will be Chile's largest wind energy project, providing enough clean and renewable energy to power up to 45,000 local homes each year without producing any emissions.
"Pattern is expanding its development reach into Latin America with the El Arrayan project, which boasts one of the strongest wind resources in Chile," said Mike Garland, CEO of Pattern Energy. "We welcome as our partner the AMSA group, which has the necessary long-term vision to help us deliver a world-class wind project. We were attracted to Chile because it is an investment-grade country with a very attractive power market and growing demand for electricity. We look forward to continuing to utilize our development expertise in Chile to help the country reach its goal of generating 20% of its energy from non-conventional renewable sources by 2020."
The El Arrayan wind power project is expected to begin construction in early 2012 and achieve commercial operation in the second half of 2013. Siemens will provide its state-of-the-art 2.3MW wind turbines, which Pattern is also using in its U.S. and Canadian projects. Skanska will perform the balance of plant construction for the project. The project has secured all land leases required for the wind turbines and transmission line. Pattern launched the financing of the project in late August and expects to reach financial close early next year. Local Chilean banks, as well as international banks, are currently analyzing the transaction; mandated lead arrangers were appointed in November.
