Wednesday, September 16, 2015

El Salvador: Enel Exits Geothermal Projects in Country

El Salvador Finalizes Pact To End Geothermal Energy Row (Law360)

El Salvador said Monday that it has finalized a $280 million agreement with Italy's Enel Green Power SpA to buy its 36.2 percent stake in a local geothermal energy venture, ending a more than eight-year dispute and sealing the Italian renewable energy group’s exit from the country.

State power company Grupo CEL said in a statement that the pact cements El Salvador’s control of La Geo, a geothermal joint venture between Enel Green and state-owned energy outfit Inversiones Energeticas S.A. de C.V.

Enel had filed for international arbitration in 2008 after it was denied a $100m purchase for control of LaGeo. LaGeo, founded in 1999, generates 23% of El Salvador’s electricity, according to the company website.

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