Petroleum group Aconcagua buys Inkia's power biz in Argentina

Latin American power firm Inkia Energy has sold its generation business in Argentina to domestic petroleum and gas company Aconcagua Energia in an “as is where is” deal encompassing thermal assets, a concession over a hydropower plant and a 60-MW wind farm project.

Aconcagua Energia said on Thursday that its renewables unit AERSA acquired 95% of the shareholding of Inkia’s businesses Orazul Energy Generating SA and Orazul Energy International Southern Cone SRL. AESA, a different unit of the Aconcagua group, acquired the remaining 5%.

Under the agreement, AERSA will pay Inkia USD 9.2 million (EUR 8.3m) for the shareholdings and businesses owned by Inkia in Argentina, Aconcagua said.

As part of the deal, AERSA will take over the 97-MW Alto Valle thermal power plant, the concession of the 479-MW Cerros Colorados - Planicie Banderita hydroelectric plant, minority stakes in the Manuel Belgrano, San Martin and Vuelta de Obligado thermal power plants and the 60-MW Coronel Dorrego wind project. Additionally, AERSA will absorb Orazul Argentina’s 102 employees.

Aconcagua Energia said that the transaction will position AERSA as a new player in the Argentine electricity market, strengthen its power generation portfolio and enable the group to reduce the carbon footprint of its upstream and oil services operations.

Aconcagua Energia’s electricity portfolio now reaches 832 MW, divided between 479 MW of hydro, 178 MW of thermal, 115 MW of solar projects and the 60-MW wind project. The group’s goal is to boost its power generation business to 1,000 MW in the next few years, it added, describing the transaction as "a strong step into the future".

(USD 1.0 = EUR 0.905)

Choose your newsletter by Renewables Now. Join for free!