KUALA LUMPUR: Yinson Holdings Bhd’s renewables business unit, Yinson Renewables has completed the acquisition of the 97 MWp Matarani Solar Project in Peru from Grenergy Renewables.

       The project is located in the Mollendo desert in the Arequipa region, one of the world’s highest solar irradiation areas, Yinson Renewables said in a statement.

       Most of the project’s energy has been contracted through a power purchase agreement (PPA) with a bankable off-taker for the next 15 years,

       Yinson Renewables said Project Matarani is currently under construction and is expected to enter commercial operation by third quarter of 2024.

       In addition to the SPV acquisition for about US$25mil, Grenergy is providing a full turnkey engineering, procurement, and construction contract for the construction of the project and is entitled to further earnouts (collectively valued at about US$65mil).

       Grenergy will also provide the operation and maintenance service for the plant for the first two years.

       Once in operation, Project Matarani will inject about 260 GWh of renewable energy into the Peruvian grid annually, enough to satisfy the energy needs of about 62,000 Peruvian households and prevent the emission of more than 56,000 tonnes of CO2 per year.

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       “The acquisition and construction of Project Matarani is a very important milestone for Yinson Renewables as a significant construction project in Peru and Latin America – a country and region that we consider of key focus area. Grenergy is a strong partner with a solid experience and expertise in the region,” Yinson Renewables chief executive officer David Brunt said.