METLEN Energy & Metals S.A. (“METLEN”) and Glenfarne Asset Company, LLC (“Glenfarne”) have reached an agreement for the acquisition of a portfolio of solar energy and Battery Energy Storage System (BESS) projects in Chile. The transaction involves operational solar projects with a total capacity of 588 MW, coupled with BESS facilities with a storage capacity of 1,610 MWh. The construction of the BESS facilities is underway and is expected to be completed within a year.
Geographic diversification and portfolio optimization
The projects will benefit from extensive geographic diversification with several interconnection points across Chile’s Sistema Eléctrico Nacional (SEN), allowing for portfolio optimization. This strategic setup enables better management of energy resources at the national level, enhancing the stability and efficiency of the infrastructure.
Acquisition terms and transaction value
The total value of the acquisition is USD 815 million, which includes the assumption of debt. This amount is subject to financial adjustments and other conditions, such as obtaining regulatory approvals and completing the construction of the BESS facilities. The transaction’s closing is expected to occur once these conditions are met, with finalization planned when the energy storage facilities become operational.
Global asset rotation program
This acquisition is part of METLEN’s global Asset Rotation Program, designed to optimize capital release while strengthening the company’s position in the renewable energy markets. The program allows METLEN to focus on new opportunities, leveraging its unique capabilities in development, engineering, and construction of complex projects.
Statements from METLEN and Glenfarne executives
Evangelos Mytilineos, CEO of METLEN, praised the transaction as a significant milestone for the company. He noted that METLEN identified the potential of the Chilean renewable energy market in 2020 and successfully overcame market challenges to develop and construct high-quality solar projects. “This agreement strengthens our relationship with Glenfarne and allows us to release capital, while building confidence in the success of our Asset Rotation Program,” he added.
Brendan Duval, Founder and CEO of Glenfarne, stated that this acquisition represents an important step in expanding Glenfarne’s presence in Chile, a key market for its energy infrastructure investments. “We are pleased to work with METLEN to support Chile’s energy transition,” he concluded.
