Red Eléctrica Chile, a subsidiary of Red Eléctrica Internacional, and the Chilean company E-CL, a subsidiary of ENGIE, have reached an agreement under which Red Eléctrica will acquire 50% of the share capital of Transmisora Eléctrica del Norte (TEN), owned by E-CL, for a total of 218 million dollars.
This acquisition will enable both companies to jointly participate in the construction and commercial operation of the Mejillones-Cardones electricity transmission line in Chile, which is being carried out by TEN.
The agreement signed today by Red Eléctrica’s Chief Executive Officer and the Corporate Director of Business Diversification, Juan Lasala and Roberto García Merino, respectively, and by the Chief Executive Officer and the Chief Financial Officer of E-CL, Axel Levêque and Carlos Freitas, was reached after completion of a process that began in May and in which many companies participated.
The project, which is already under construction, forms part of the main transmission system in Chile and consists of a 500 kilovolt line that is 600 kilometres in length that will connect the Sistema Interconectado Central grid (SIC) with the Sistema Interconectado del Norte Grande grid (SING).
With an investment of over 780 million, this line will be the first interconnection in Chile between the northern and central electricity subsystems.
The new electricity axis, whose commissioning is scheduled for the second half of 2017, will address the main challenge that the Chilean electricity system faces: the interconnection between its various subsystems to ensure security of supply and to reduce the price of energy.
The partnership between the two entities formalised today will set the stage for Red Eléctrica to start its activity in Chile and will also enable E-CL to count on the experience and capability of Red Eléctrica as manager and operator of electricity transmission lines in Spain, as well as in South America.
For the Red Eléctrica Group, this acquisition is an important milestone and is part of the deployment of the Strategic Plan 2014-2019, as it helps to expand the business base by increasing its presence in South America, and allows a controlled low risk diversification. It also incorporates a high value due to its core nature and represents the consolidation of Red Eléctrica in two neighbouring geographical areas, northern Chile and southern Peru, where it already has a presence as a strategic shareholder and operator in three transmission lines concessions.
About E-CL
E-CL SA is the main electricity generator of the Sistema Interconectado del Norte Grande (SING), with about 50% market share, and fourth nationally with 2,108 megawatts of installed power capacity.
The firm is among the largest companies in the Santiago Stock Exchange and is part of IPSA.
ENGIE is the controlling shareholder of E-CL with 52.77% of the share capital; the remainder is traded on the stock market and divided up between pension funds, institutional investors and others.
About ENGIE
ENGIE (formerly GDF SUEZ) carries out its electrical energy and natural gas activities and electricity services based on responsible growth taking into account the main energy and environmental challenges: ensure security of supply, the fight against climate change and maximising the use of resources.
The Group provides highly efficient and innovative solutions to individuals, businesses and cities by relying on diversified, flexible gas supply sources and low emission electricity generation, as well as a unique expertise in four key sectors: the independent production of energy, liquefied natural gas, renewable energy and energy efficiency services.
ENGIE employs 152,900 people worldwide and reached revenues of 74.7 billion euros in 2014.
The Group is listed on the Paris, Brussels and Luxembourg stock markets and has a presence in the main international indexes: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone, Euronext Vigeo Eurozona 120, Vigeo Mundial 120, Vigeo Europa 120 and Vigeo Francia 20.
About Red Eléctrica
The Red Eléctrica Group is a holding company whose parent company is Red Eléctrica Corporación and it has several dependant subsidiaries such as: Red Eléctrica de España, in charge of electricity activities in the Spanish territory and responsible for the investment plan of the Company, and Red Eléctrica Internacional, responsible for the Group’s investment activities abroad, channelled through the Company’s subsidiaries in Peru REDESUR and Red Eléctrica Andina (REA). Recently a new subsidiary, Red Eléctrica Chile has been created.
Red Eléctrica de España is the company responsible for the transmission of electrical energy and proper functioning of the electricity system. With over 42,000 kilometres of high voltage electricity lines, which form a meshed, robust and reliable grid that offers the highest level of service quality indices, it guarantees the continuity and security of electricity supply at all times while maintaining the balance between generation and consumption, and is also responsible for managing the development of the transmission grid. The Company carries out these functions under the principles of neutrality, transparency, independence and economic efficiency in order to contribute to providing a quality, efficient and sustainable electricity service.
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