24th Mar 2015 09:40
LONDON (Alliance News) - Rame Energy PLC on Tuesday said it has increased the capacity of the Chilean wind projects to be developed under its framework funding deal with Santander Investment Chile Ltda by a net 15 megawatts and said it is to sell the Punta Chome project.
Rame said it has decided to develop a new 24 megawatt wind project in conjunction with one of the existing projects already included in the USD69 million framework. The addition of the new project will increase the total capacity of the projects under the framework to 133 megawatt from 118 megawatt.
The increase of a net 15 megawatt includes the addition of the new project and the exit of the 9 megawatt Punta Chome project, which Rame said will no longer be considered for investment under the Santander plan. As a result, it has signed a deal with EREN Développment, the European renewable energy developer, to sell the project.
Rame said the sale of the project will be worth USD2 million and said it retains the option to take a 20% participation in the project's equity.
"The introduction of a new project under the framework agreement with Santander increases the overall MW target and its consolidated returns. It is also testament to our ongoing relationship with Santander and the expanded 54MW project will be fast-tracked to construction by the end of 2016," said Tim Adams, chief executive of Rame.
"The decision not to proceed with the Punta Chome project emphasises the ability of the partners to make effective changes to the strategy and to respond to emerging opportunities in this very dynamic market," Adams added.
Shares in Rame were up 14% to 9.25 pence on the news, one of the best performers in the London Main Market.
By Sam Unsted; [email protected]; @SamUAtAlliance
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