27th May 2015 09:00
LONDON (Alliance News) - Rame Energy PLC Wednesday said it has been hit by a slight delay in securing the certificate for the final grid connection for its Chilean Raki and Huajache wind projects as additional information from the system operator is required.
The power producer also said the next potential project sites in the Santander portfolio, of which Raki and Huajache are part, could produce 25% more power per year than originally thought after the company re-evaluated data from the projects.
Rame said the certification is "pending" for Raki and Huajache and said the "minor modifications" required in order to comply with the clarifications received are expected to be completed shortly.
As a result, EKA, the counter-party to the power purchase agreement from the two projects has agreed to delay the start date of the agreement due to the delay in securing the necessary certification, it said.
Rame holds a 20% interest in the Raki and Huajache projects alongside Santander Investment Chile Ltda. Both companies have agreed on completion dates to finalise a commercial account with the engineering, procurement and construction contractor, Vestas.
"This agreement remains subject to final approval within Santander which is imminent and anticipates commencement of energy sales in the middle of June," said Rame.
"We are pleased that we have now received full clarification on the certification process for Raki and Huajache from the grid operator and that with our partner Santander, we have also achieved commercial close out of the EPC contract," said Rame Chief Executive Tim Adams.
In addition, Rame said it has gathered further wind data at the next potential project sites in the Santander portfolio which have a combined capacity of 133 megawatts. Following the installation of taller 112 metre wind measurement masts last year, the physical data gathered shows potential annual energy production could be 25% higher than originally estimated.
"The directors estimate that this could correspond to a significant increase in the net present value of the projects in question," said Rame.
Rame shares were up 4.7% to 8.90 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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