Innergex Announces the Commissioning of the Salvador Battery Facility in Chile
Commissioning of Innergex's largest storage facility to date
The facility is expected to generate CAN$11.4 million in annual revenues over its first full year of operation, which includes the contribution of capacity payments
LONGUEUIL, QC, Oct. 30, 2023 /CNW/ - Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") is pleased to announce that its 50 MW/250 MWh (5 hours) Salvador battery facility located on the site of Innergex's existing Salvador solar facility in Northern Chile has begun operations and is injecting energy to the grid.
The Salvador battery facility is Innergex's first utility-scale battery storage site and among the first installed in Chile. This achievement will not only serve Innergex in providing stable energy to the grid with its diversified portfolio of complementarity assets, it will also support the country in the decarbonization of its energy sources. Combined with the rest of the Corporation's portfolio of wind, solar and hydro assets, this facility will support a growing supply demand for 24/7 renewable energy production and contribute to increasing returns on energy production.
"The commissioning of our largest storage facility to date is a significant addition to our portfolio that showcases our commitment to sustained growth and long-term value creation," said Michel Letellier, President and Chief Executive Officer of Innergex. "The facility will enable Innergex to leverage surplus solar production and enhance revenue optimization by aligning with market trends and demand in Chile, while capacity payments will bring important additional revenues to the facility's revenue streams. We regard battery storage as a very attractive technology for Innergex's growth and we look forward to developing additional renewable energy and complementary battery storage initiatives to seize the abundant opportunities before us."
The Salvador battery facility is located on the site of the 68 MW Salvador solar facility in the Atacama Desert, a region with one of the highest solar irradiance potential in the world. The renewable energy produced by the solar facility is stored during the day to be dispatched to evening hours to benefit from peak prices on the merchant market at times of greater demand. This enables the storage facility to avoid daytime congestion and support the grid upon peak energy demand and optimize the project's returns.
The facility will start benefiting from capacity payments by the end of 2023. Combined with capacity payments, the Salvador battery facility is expected to generate annual revenues of approximately US$8.2 million (CAN$11.4 million) in its first full year of operation, while operating, general and administrative expenses are expected to reach US$0.9 million (CAN$1.2 million) during the same period.
The facility is already fully financed through Innergex's green bonds issuance completed on August 5, 2022.
About Innergex Renewable Energy Inc.
For over 30 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity, which led to Innergex being recognized as Canada's best corporate citizens in 2023 by Corporate Knights. As an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, Innergex is convinced that generating power from renewable sources will lead the way to a better world. Innergex conducts operations in Canada, the United States, France and Chile and manages a large portfolio of high-quality assets currently consisting of interests in 86 operating facilities with an aggregate net installed capacity of 3,579 MW (gross 4,226 MW) and an energy storage capacity of 409 MWh, including 40 hydroelectric facilities, 35 wind facilities, 9 solar facilities and 2 battery energy storage facilities. Innergex also holds interests in 12 projects under development with a net installed capacity of 747 MW (gross 849 MW) and an energy storage capacity of 355 MWh, 4 of which are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity totalling 9,352 MW. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and to distribute a stable dividend.
To learn more, visit innergex.com or connect with us on LinkedIn.
Cautionary Statement Regarding Forward-Looking Information
To inform readers of the Corporation's future prospects, this press release contains forward-looking information within the meaning of applicable securities laws ("Forward-Looking Information"), including future-oriented financial information or financial outlook within the meaning of securities laws, such as information regarding the estimated targeted revenues and operating, general and administrative expenses of Operating Projects, and other statements that are not historical facts. Such information is intended to inform readers of the potential financial impact of expected results, of the expected commissioning of Development Projects, of the potential financial impact of completed and future acquisitions and of the Corporation's ability to sustain current dividends and to fund its growth. Such information may not be appropriate for other purposes.
Forward-Looking Information is based on certain key assumptions made by the Corporation, including, without restriction, those concerning hydrology, wind regimes and solar irradiation; performance of operating facilities, acquisitions and commissioned projects; project performance; availability of capital resources and timely performance by third parties of contractual obligations; favourable market conditions for share issuance to support growth financing; favourable economic and financial market conditions; the Corporation's success in developing and constructing new facilities; successful renewal of PPAs; sufficient human resources to deliver service and execute the capital plan; no significant event occurring outside the ordinary course of business such as a natural disaster, pandemic or other calamity; continued maintenance of information technology infrastructure and no material breach of cybersecurity.
For more information on the risks and uncertainties that may cause actual results or performance to be materially different from those expressed, implied or presented by the forward-looking information or on the principal assumptions used to derive this information, please refer to the "Forward-Looking Information" section of the Management's Discussion and Analysis for the three months ended June 30, 2023.
SOURCE Innergex Renewable Energy Inc.
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