Atlantica Announces an Agreement with Algonquin to Acquire a 20 MW Solar Asset in Colombia

Rhea-AI Summary

Atlantica Sustainable Infrastructure has announced its agreement to acquire a 20MW solar plant in Colombia from Algonquin Power & Utilities. The investment totals approximately US $20 million, marking Atlantica's inaugural venture in Colombia, a country recognized for its attractive growth prospects in renewables. The project will feature a 15-year Power Purchase Agreement (PPA) and is expected to commence commercial operations in mid-2021. The companies may also collaborate on additional solar projects in Colombia, with a total capacity of about 30MW.

Positive

• Acquisition of a 20MW solar plant in Colombia enhances renewable energy portfolio.
• First investment in Colombia opens new market opportunities.
• Partnership with Algonquin for potential additional solar projects (30MW capacity).

Negative

• Investment of US $20 million may strain financial resources.
• Dependence on successful construction and commercial operation of the solar plant.

December 14, 2020 – Atlantica Sustainable Infrastructure plc (NASDAQ: AY), the sustainable infrastructure company that owns a diversified portfolio of contracted assets in the energy and environment sectors, announced today that it has reached an agreement with a subsidiary of Algonquin Power & Utilities Corp. (“Algonquin”) (TSX/NYSE: AQN), a diversified international generation, transmission, and distribution utility with approximately US $11 billion of total assets, to acquire a 20MW solar plant with a 15 year PPA in place in Colombia. The project was developed and is being constructed by AAGES, Algonquin’s international joint venture.

The investment is expected to be approximately US $20 million. Closing is expected to occur after the asset reaches commercial operation, which is currently expected in mid-2021. This represents Atlantica’s first investment in Colombia, an OECD member country with investment grade rating.

Additionally, Algonquin and Atlantica have agreed to potentially co-invest in additional solar plants in Colombia with a combined capacity of approximately 30MW to be solely developed and built by AAGES.

Santiago Seage, Atlantica’s CEO said: “We are happy to co-invest with Algonquin in these projects, in a measured step to enter into a new market like Colombia, with attractive growth prospects for renewables and with similar characteristics to other Atlantica’s markets in South America.”

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this press release including, without limitation, those regarding the construction of the asset and closing of acquisition, our future financial position and results of operations, our strategy, plans, objectives, goals and targets, future developments in the markets in which we operate or are seeking to operate or anticipated regulatory changes in the markets in which we operate or intend to operate. In some cases, you can identify forward-looking statements by terminology such as "aim," "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "guidance," "intend," "is likely to," "may," "plan," "potential," "predict," "projected," "should" or "will" or the negative of such terms or other similar expressions or terminology.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements speak only as of the date of this press release and are not guarantees of future performance and are based on numerous assumptions. Our actual results of operations, financial condition and the development of events may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated above, include those factors discussed under “Item 1.A—“Risk Factors” in our Quarterly Report for the nine-month period ended September 30, 2020 furnished on Form 6-K on the date hereof and under “Item 1.A—“Risk Factors” in our quarterly report for the nine-month period ended September 30, 2020 furnished on Form 6-K on November 6, 2020, and “Item 3.D—Risk Factors” and “Item 5.A—Operating Results” in our annual report filed for the fiscal year ended December 31, 2019 filed on Form 20-F. Atlantica undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Atlantica

Atlantica is a sustainable infrastructure company that owns a diversified portfolio of contracted renewable energy, efficient natural gas, electric transmission and water assets in North & South America, and certain markets in EMEA (www.atlantica.com).

Chief Financial Officer Francisco Martinez-Davis E  ir@atlantica.com

Investor Relations & Communication Leire Perez E  ir@atlantica.com T  +44 20 3499 0465

FAQ

What does Atlantica's acquisition of the solar plant in Colombia entail?

Atlantica is acquiring a 20MW solar plant with a 15-year Power Purchase Agreement from Algonquin for about US $20 million.

When is the expected commercial operation date for the solar plant?

The solar plant is expected to reach commercial operation by mid-2021.

What are the potential future projects following this acquisition?

Atlantica and Algonquin are considering co-investing in additional solar plants in Colombia, potentially adding 30MW in capacity.

How does this investment impact Atlantica's market presence?

This investment marks Atlantica's entry into the Colombian renewable energy market, which has promising growth prospects.

What is the financial investment involved in this acquisition?

The acquisition of the solar plant involves an investment of approximately US $20 million.