Polaris Infrastructure has completed the acquisition of Peruvian hydropower developer Union Energy Group.
The deal means Polaris now owns a number hydro assets, both in operation and in development, in Peru. Assets include the 5MW Canchayllo project which has been in operation since 2015, the 20MW Karpa project, and two projects in the late stages of construction totaling 28MW of generating capacity, the 8MW El Carmen and 20MW 8 de Agosto.
The company will also have a portfolio of early stage development projects amounting to approximately 189MW.
“We are very pleased to have completed this transaction which we expect will provide numerous benefits to the Company and its shareholders. Namely, the acquisition provides significant diversification of both asset class, by adding run-of-river hydro projects, and geography, by entering Peru,” Polaris Infrastructure CEO Marc Murnaghan said. “The Company expects to continue to grow its cash flow per share and leverage available cash resources on the balance sheet to fund capital requirements of the Generación Andina projects currently under construction.