Project Salvador Secures Power Purchase Agreement with EE-ERNC-1
May 6, 2015, Geneva, Switzerland – Etrion Corporation (“Etrion” or the “Company”) (TSX: ETX) (OMX: ETX), a solar independent power producer, and Empresa Eléctrica ERNC-1 (“EE-ERNC-1”), a power trading company, announce the execution of a long-term power purchase agreement (“PPA”) for Project Salvador, a 70-megawatt (“MW”) solar power plant in northern Chile (“Project Salvador”).
As previously announced, Etrion and its partners, Total (CAC: TOTF.PA) and SunPower (NASDAQ: SPWR), celebrated the completion of the Salvador solar power plant in January 2015. Project Salvador is owned initially 70 percent by Etrion, 20 percent by Total and 10 percent by a local developer. Project Salvador is expected to produce approximately 200 gigawatt-hours of solar electricity per year, enough to supply electricity to approximately 70,000 households in Chile.
Project Salvador is currently operating on a merchant basis where the electricity produced is sold on the spot market and delivered to the Sistema Interconectado Central (“SIC”) electricity network. In order to secure a portion of the revenues, Project Salvador has executed a long-term PPA with EE-ERNC-1, an investment grade off-taker. The PPA is for approximately 35 percent of Project Salvador’s production for 15 years starting January 1, 2016, with the electricity price denominated in US dollars and inflated according to the US Consumer Price Index (“CPI”).
Marco A. Northland, Etrion’s CEO, commented, “We are pleased to announce our first PPA in the Americas and look forward to working with EE-ERNC-1 to supply clean electricity to consumers in Chile. We continue our efforts to market additional Salvador capacity to other off-takers for complementary long-term contracts.”
Olivier Potart, Antuko’s Chief Investment Officer in charge of energy trading for EE-ERNC-1, said, “The energy produced by the Salvador solar park is extremely predictable and stable throughout the year. It is therefore a robust energy source in EE-ERNC-1’s portfolio.”
EE-ERNC-1 is a Chilean power generation company co-managed by BCI Asset Management, the asset management arm of BCI Bank, and Antuko, a quantitative risk management advisor specialized in the energy sector. EE-ERNC-1’s business model consists of purchasing energy production from renewable plants (solar PV, wind and hydro) and aggregating the production curves in order to obtain a stable generation pattern that can be sold to traditional energy consumers (residential, industrial , commercial, etc.) that require stable 24/7 energy supply. For additional information, please visit Antuko’s website at www.antuko.com.
Etrion Corporation is an independent power producer that develops, builds, owns and operates utility-scale solar power generation plants. The Company owns 130 MW of installed solar capacity in Italy and Chile. Etrion has 34 MW of solar projects under construction in Japan and is also actively developing greenfield solar power projects in Japan and Chile. The Company is listed on the Toronto Stock Exchange in Canada and the NASDAQ OMX Stockholm exchange in Sweden under ticker symbol “ETX”. Etrion’s largest shareholder is the Lundin family, which owns approximately 24 percent of the Company’s shares directly and through various trusts. For additional information, please visit the Company’s website at www.etrion.com.
Olivier Potart – CIO, Antuko
Telephone: +56 2 26583245, email: email@example.com
Pamela Chouamier – Investor Relations, Etrion
Telephone: +41 (22) 715 20 90, email: firstname.lastname@example.org
Note: The capacity of power plants in this release is described in approximate megawatts on a direct current (“DC”) basis, also referred to as megawatt-peak (“MWp”).
Etrion discloses the information provided herein pursuant to the Swedish Securities Market Act. The information was submitted for publication at 07:55 CET on May 6, 2015.
This press release contains certain “forward-looking information”. All statements, other than statements of historical fact, that address activities, events or developments that Etrion believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the expected production from Project Salvador and the possibility of entering into additional off-take agreements for Project Salvador). This forward-looking information reflects the current expectations or beliefs of Etrion based on information currently available to it as well as certain assumptions (including that Project Salvador will be operated in a manner consistent with management’s expectations). Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause actual results to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Etrion. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the risk that Project Salvador may not produce electricity at expected levels and the risk that the Company may not be able to enter into additional off-take agreements for Project Salvador on economic terms.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Etrion disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although Etrion believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty thereof.