Polaris Infrastructure Inc. issued the following announcement on Jan. 7.
Polaris Infrastructure Inc. (TSX: PIF) ("Polaris Infrastructure" or the "Company"), a Toronto-based company engaged in the acquisition, development and operation of renewable energy projects in Latin America, is pleased to announce that its two run-of-river hydro projects in Peru, 8 de Agosto and El Carmen, have achieved their respective Commercial Operation Dates ("COD") and have received official extensions of the Power Purchase Agreements ("PPA").
Following the Company's acquisition of these and other assets on October 30th, 2018, the Company set about completing construction of the projects within the terms of the applicable PPAs. El Carmen (~ 8 MW expected capacity) and 8 de Agosto (~ 20 MW expected capacity) are in the Huanuco region of Peru. Successful management of the Company's construction and engineering partners, coupled with effective cooperation from the various Peruvian government administrative bodies allowed Polaris Infrastructure to deliver on this significant achievement.
Both projects are now delivering electricity and are connected to the national grid through a 60 km transmission line owned by Polaris Infrastructure.
El Carmen's commercial operation was achieved on November 30th, 2019 and 8 de Agosto achieved commercial operation on December 25th, 2019. As the PPAs for both projects stipulate required CODs of October 28th, 2019, formal extensions were required from the Peruvian Ministry of Energy and Mines ("MINEM") for such PPAs to remain valid. Polaris Infrastructure has now received the formal extensions from MINEM with extension dates in the first quarter of 2020 for both 8 de Agosto and El Carmen. Accordingly, any electricity that is delivered after such commercial operations dates are recognized under the corresponding PPA pricing terms.
"The completion of the construction of the hydro projects in Peru is another important milestone for the Company. The combination of strong cash flow generation at San Jacinto with additional revenue and cash flow from our hydro projects in Peru sets the Company up very well for 2020. The additional diversification of revenue and cash flow will enable the Company to continue to grow and diversify as well as return capital to shareholders", noted Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure.
About Polaris Infrastructure
Polaris Infrastructure is a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America. Currently, the Company operates a 72MW geothermal project located in Nicaragua and a 5MW as well as another 28 MW of run-of-river projects located in Peru.
Original source can be found here.
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