Repsol and Ibereólica Renovables Group’s Joint Wind Farm Venture in Chile

Squire Patton Boggs has advised Repsol and Ibereólica Renovables Group on the deal.

Repsol, a Spanish global energy company, and Ibereólica Renovables Group, a renewable energy company, completed Cabo Leones III, the businesses’ first joint wind farm in Chile. Located in the province of Huasco in the northern region of Atacama, the wind farm’s install capacity totals 188.1 megawatts (MW).

The wind farm’s first phase was launched at the end of 2020 and as the second phase approaches completion, commercial operations are slated to begin in the fourth quarter of 2021. Together, both phases are expected to produce approximately 520 gigawatt hours (GWh) of power per year with the capability of meeting the energy needs of 170,000 Chilean households. 

Cabo Leones III has also made a significant contribution to local job creation, including up to 150 workers on the ground. Additionally, the clean, renewable power generated by the wind farm will save approximately 418,000 tons of carbon monoxide in annual emissions for the region.

Repsol and the Ibereólica Renovables Group secured long-term funding for Cabo Leones III through a project financing arrangement worth $209 million with Spanish and international financial institutions. The deal includes long-term debt and establishes a series of guarantees.

The Ibereólica Renovables Group has more than 24 years of experience in renewable power generation projects. Its 12 operating wind farms have total installed capacity of 205 MW in Spain and 613 MW in Chile, with another 450 MW currently under construction in Chile. It can also claim a 10 GW platform of wind, solar photovoltaic, and hydraulic projects in various stages of development in Spain, Chile, Peru, and Brazil.

Outside Chile, Repsol already boasts one fully operational wind farm in Spain — Delta, with 335 MW — in addition to five other renewable projects across the Iberian Peninsula in various phases of development: two wind farms (Delta 2 with 860 MW, already under construction, and PI with 175 MW) and three photovoltaic solar farms (Kappa with 126 MW and Valdesolar with 264 MW, both already partially operational, and Sigma with 204 MW).

The Squire Patton Boggs team advising on the venture was led by partner Kevin Levey (Picture) and included partners James Schneider, Manuel Mingot and Jeremy Ladyman and associate Hannah Zapfe.

Involved fees earner: Jeremy Ladyman – Squire Patton Boggs; Kevin Levey – Squire Patton Boggs; Manuel Mingot – Squire Patton Boggs; James Schneider – Squire Patton Boggs; Hannah Zapfe – Squire Patton Boggs;

Law Firms: Squire Patton Boggs;

Clients: Ibereólica Renovables Chile; Repsol SA;