Israel Corp unit Inkia wins large energy deal in Peru

The contracts will use the firm's current generating capacity and that of plants under construction.

Israel Corporation (TASE: ILCO) wholly-owned subsidiary Inkia Energy Ltd. has signed power purchase agreements (PPA) worth at least $1.5 billion through its Peruvian unit Kallpa Generacion SA. Kallpa signed several 8-10-year PPAs with a local power distributor for the sale of 560 megawatts of electricity beginning in 2014.

The electricity will be produced from Kallpa's gas turbine power plants. The new PPAs follow Kallpa's current long-term contracts, and boost electricity sales to 850 megawatts from the company's existing power plants as well as power stations under construction.

Inkia operates power plants in several Latin American countries through local subsidiaries, such as Kallpa, in which it owns a 75% stake. The company currently produces 3,000 megawatts, mostly in Peru, where it produces 40% of the country's electricity. For the sake of comparison, electricity production in Israel is 11,000 megawatts a year.

Israel Corp's share price fell 0.9% in morning trading to NIS 3,109.

Published by Globes [online], Israel business news - www.globes-online.com - on April 18, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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