SAN FRANCISCO, June 12, 2014 (GLOBE NEWSWIRE) -- Expanding its commercial operations into Chile, Pattern Energy Group Inc. (Nasdaq:PEGI) (TSX:PEG) ("Pattern Energy"), today announced that the 115 MW El Arrayán Wind project has completed construction and is fully operational. The El Arrayán Wind power project is the largest wind project in Chile and all of South America.
- Pattern Energy's first wind project outside North America
- Expands portfolio to eight operating wind projects across three countries
- Increases Pattern Energy's owned operating capacity by 36 MW, representing Company's proportional interest in the project, to 1,042 MW
- Second project to be completed this year with three additional construction projects expected to reach completion in 2014
"With the completion of El Arrayán Wind we are expanding our portfolio of world-class wind power projects with stable long-term cash flows in attractive markets," said Mike Garland, CEO of Pattern Energy. "We were drawn to Chile for its robust and stable economy, its electricity pricing in U.S. dollars and its aggressive policy to expand renewables given their limited domestic energy resources. The project is one of the best wind sites in all of Chile. We have delivered El Arrayán on time, increasing our total operations to eight operating wind facilities with three more projects totaling 393 MW in construction, all of which are on track to be completed this year."
El Arrayán Wind is located approximately 400 km north of Santiago on the coast of Chile, in a location with strong coastal winds. The El Arrayán project will generate clean, renewable power equal to the needs of approximately 200,000 Chilean homes each year. The facility is utilizing 50 Siemens 2.3 MW wind turbines, which Pattern Energy is also using at other wind projects in Canada and the United States.
Pattern Energy is the operator of El Arrayán Wind and is a joint venture owner with a net ownership interest of 31.5% in the project. Its joint venture partners include AEI El Arrayán Chile SpA, a subsidiary of AEI, and Antofagasta Minerals SA (AMSA) with net ownership interests of 38.5% and 30% of the project, respectively. In addition, AMSA is the controlling party of the off-taker Minera Los Pelambres, which will acquire approximately 70% of the project's expected electricity generation through a long-term fixed-for-floating hedge. The project will sell its remaining output into the Chilean spot market at the prevailing market price at the time of sale.
El Arrayán connects to the Sistema Interconectado Central's 220kV transmission system. The project is located on approximately 15,320 acres of coastal land on a long-term lease with a single landowner.
Approximately 200 jobs were created during construction, as well as up to 15 ongoing permanent positions. The project was constructed by Skanska Chile SA, a subsidiary of Skanska AB and one of the leading wind-focused construction firms in Chile.
Compared to generation from a coal-fired power plant, the electricity produced annually by El Arrayán Wind will offset more than 300,000 metric tons of carbon dioxide, the equivalent to the annual carbon footprint of an estimated 70,000 Chileans, and will conserve enough water to meet the needs of more than 11,000 Chileans.
About Pattern Energy
Pattern Energy Group Inc. (Pattern Energy) is an independent power company listed on the NASDAQ ("PEGI") and Toronto Stock Exchange ("PEG"). Pattern Energy has a portfolio of eleven wind power projects, including two projects it has agreed to acquire, with a total owned interest of 1,435 MW, in the United States, Canada and Chile that use proven, best-in-class technology. Pattern Energy's wind projects generate stable long-term cash flows in attractive markets and provide a solid foundation for the continued growth of the business. For more information, visit www.patternenergy.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities laws, including statements regarding the ability to complete construction of three additional projects this year, the ability to sell remaining output not sold under the fixed-to-floating hedge on the Chilean spot market, and the amount of carbon dioxide the project will be able to offset annually. These forward-looking statements represent the Company's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the documents filed with the SEC and applicable Canadian securities regulatory authorities, including the Company's annual report on Form 10-K. The risk factors and other factors noted therein could cause actual events or the Company's actual results to differ materially from those contained in any forward-looking statement.
Source:Pattern Energy Group Inc.