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Commencement of Commercial Operations – Raki / Huajache Wind Power Project
Rame Energy has announced that it has formally transitioned into an independent power producer, alongside the Company’s development business, following the completion of all system certification to permit commencement of dispatch of power from its 15MW Raki / Huajache wind project in Chile. Accordingly the project has now been energised, marking a major milestone in line with the Company’s strategy to develop 300MW of generating assets in Latin America within the next three years.
As previously announced, a 10 year power purchase agreement is in place with EKA Chile S.A., a joint venture between AkzoNobel, a leading global paints and coatings company and a major producer of specialty chemicals, and Celulosa Arauco y Constitución S.A, a leading Chilean company and a leader in sustainable forest products.
Rame holds a 20% equity interest in the project alongside Santander.
Rame CEO Tim Adams commented, “I am delighted that the project has now been energised, enabling the asset to begin generating revenue from power sales and facilitating our new formal status as an IPP in Chile. With the final elements of system certification now in place, this crystallises the start of our on-grid generation business in Chile and sets the scene with our partner Santander for the next projects in Rame’s active development pipeline. Although this has been a challenging project both from a construction perspective and also latterly in terms of connection procedures, we will carry this experience forward with our partners and apply it to our portfolio of development assets.
“The commencement of commercial operations at Raki/Huajache means that Rame will now benefit from the on-going project earnings associated with becoming an asset owner/IPP as well as the fees in consideration of our management contract. This will add to the financial rewards already received by Rame following the sale of an equity stake in the project to Santander and project and construction management fees received during the build.”
