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China’s State Power to fully own 110MW Chilean hydro

The $44m deal will see Italian developer Astaldi sell its minority stake to Pacific Hydro, a platform the Chinese utility acquired from IFM Investors last year.

State Power Investment Corporation of China is set to take full control of a 110MW hydro power plant in Chile through acquiring the 27.3 percent stake it does not already own for $44 million. 

The Chinese state-owned power utility will buy the interest from the project’s developer Astaldi through its Chilean subsidiary, Pacific Hydro Chile. The unit, which was part of a renewable energy platform State Power acquired last year, is the owner of a 72.7 percent stake in the Chacayes hydro plant. 

Opened in October 2011, the facility was one of six hydro and wind projects Pacific Hydro owned in Chile. The $450 million run-of-river plant has been selling its electricity to Chilectra, the largest electricity distributor in the country, under a long-term power purchase agreement. 

The transaction is expected to close by the end of this month.

State Power acquired Pacific Hydro, a 900MW portfolio of renewables projects, from Australian fund manager IFM Investors in January 2016. The assets were valued at over $3 billion, including debt, reports estimated. At the time of the acquisition, the portfolio comprised 19 hydro power plants and wind farms in Chile, Australia and Brazil. 

State Power is one of China’s five major state electricity producers, with presence in 35 countries.