Marco Fragale: “Peru is a focal point for the development of renewable technologies”

Through Orygen, the British capital investment fund Actis will be in charge – via Niagara Energy – of Enel Generación’s portfolio in our country. Fragale is at the head of the project, and for La República he explains the role that his team will play and how renewable energies represent an opportunity for change.

—Orygen is Actis’ third big bet in Latin America. What motivated you to land in Peru? Do you consider it an attractive place?

Actis’ objective is to position itself in countries where there is great potential for growth in renewable energy. And Peru is a focal point for the development of these technologies, in addition to having a stable regulatory framework in the energy sector and outstanding macroeconomic indicators in the region. As Orygen, our goal is to contribute to the country being one of the main protagonists of renewable development in the region in the coming years.

—Orygen has announced an investment plan of up to US$1 billion over the next five years. How much of this provision will be allocated for conventional and non-conventional renewable energies?

100% of this investment will be allocated to renewable projects, whose objective is to provide the country with 2 strategic energy nodes in the north and south of the territory. In this way, we consolidated ourselves as the company with the largest renewable energy portfolio in Peru, with 600 MW of installed solar and wind capacity that represents 40% of Peru’s non-conventional renewable capacity. Added to this is our portfolio of renewable projects of more than 12 GW.

—What projects do you plan to start in Peru in this period? In what regions will they be located?

We have several projects close to Ready-toBuild status. Therefore, we would be able to begin these investments in the next 12 months, specifically, to develop projects in the north and south of Peru. In due course, we will communicate it.

— Orygen inherits a place that in 2023 recorded revenues of S/2,383 million, 10.2% more compared to 2022 for Enel Generación. Part of this record is due to a higher average sales price (+6.6%). Will the Actis acquisition be able to maintain this average in 2024?

In this new beginning as Orygen, we will seek to further improve the financial and operational performance that the company has had over the years. Likewise, we have plans to invest in the development of new renewable projects that provide Peru with the sustainable, reliable and competitive energy it needs to boost its industries and people’s well-being, as well as reduce its carbon footprint.

—There is a bill in Congress that promotes the entry of more renewable energies into the market, through the purchase of separate power energy in favor of the hourly blocks of photovoltaic energy. What is your position?

In general, we support all initiatives that promote the improvement of the regulatory framework to promote the development of renewable energies under conditions of competition for the economic benefits they will bring to the country. However, the bill to modify Law 28832 contains structural changes that transcend the scope of renewable energies, and in that sense we consider it relevant that such proposals be analyzed in detail and technically discussed in the country to ensure that they have positive impacts for the electrical sector.

—Was the water stress that occurred in Peru during 2023 a competitive factor for the purchase of Enel Generación?

The factors that motivated Actis’ purchase of the generation assets were the company’s high performance in recent years, its leadership, the renewable energy market and its extensive portfolio of solar, wind and hybrid projects throughout the year. National territory.

—Would a levelized rate for natural gas, which is also used for thermoelectric generation, be beneficial to expand investments in the sector? Taking into account that the generation of this type was the one that provided the greatest contributions to the Enel Generación firm in 2023.

We will always agree with legislative initiatives that favor the energy sector. In this case, the implementation of a levelized rate for natural gas requires a comprehensive, exhaustive analysis and a rigorous evaluation to determine its potential benefits, challenges and, above all, that it does not cause an increase in the electricity rate for the end user. In this sense, it is essential to consider the perspectives of various sectors to make decisions that promote sustainable investment in the energy sector.

—What are Actis’ next plans in Latin America and the world?

As we have said, Actis’ objective is to position itself in countries where there is great potential for growth in renewable energy.