Salvepar has committed to invest USD7m in Latin America Power (LAP), a developer and operator of renewable energy projects in Chile and Peru with a staff of approximately 65 employees.
This investment by the company comes as part of a capital increase in LAP led by LAP existing shareholders, of which P2 – a joint venture between Blackstone-backed Patria Investimentos and Promon, a major player in infrastructure EPC in Brazil – is one.
LAP seeks to benefit from the significant growth and industrialisation of both Chile and Peru, which has created the need for a substantial increase in power generation capacity. In addition, both countries have indicated that they seek to further develop the contribution of renewable energies, which Salvepar believes provides an opportunity for smaller operators such as LAP to grow quickly via greenfield projects and acquisitions of early- or mid-stage projects. Renewable energy projects also benefit from government incentives which improve their economic profiles.
LAP currently operates an installed capacity of 33 MW based in Peru, and has 10 projects in Chile and Peru for an installed capacity of c. 700 MW under development, of which several projects are at an advanced stage.
