In June 1994, HINISA was granted a thirty-year concession for the generation, sale and commercialization of electricity from the Nihuiles hydroelectric system (the “Los Nihuiles System”). Located on the Atuel river, in the Province of Mendoza, the Los Nihuiles System has an installed capacity of 265.2 MW, which represents 0.9% of the installed capacity in Argentina, and is composed of three dams and three hydroelectric power generation plants (Nihuil I, Nihuil II and Nihuil III), as well as a compensator dam. The Los Nihuiles System covers a total distance of approximately 40 km with a height differential between 440 m and 480 m. From 1990 to 2010, its annual average generation was 908 GWh, with the highest level of generation (1,250 GWh) reached in 2006 and the lowest level (681 GWh) recorded in 1999.
HINISA’s revenues are composed of energy and capacity sales. Total revenues for the year ended December 31, 2010 were AR$172 million, corresponding to a net generation of 778 GWh, 8.9% lower than in 2009, with a hydraulic contribution of 878 Hm3, 8.0% lower than in 2009. HINISA made 60% of its sales in the spot market.
The following chart shows certain relevant statistical data on Los Nihuiles:
2009
2010
2011
Net Generation (GWh)
854
778
586
Energy Purchases (GWh)
308
302
287
Total Energy Sales (GWh)
1.162
1.080
873
Average Price (AR$ / MWh)
133,5
158,7
189,9
Average Gross Profit (AR$ / MWh)
60,3
66,0
62,8
Note: Gross Margin before amortization and depreciation charges.
