The solar power plant is located in the Mexican state of Hidalgo and has been awarded a power purchase agreement (PPA) with the Federal Electricity Commission (CFE), Mexico’s federal electricity company. The PPA was awarded in the first long-term energy auction, carried out in 2016 as part of Mexico’s energy reform.
Bancomext will provide $88.5 million dollars to finance the construction of the project, along with a $17 million dollars line of credit for Value Added Tax (VAT). The plant will have an installed capacity of approximately 129.5 MWp.
The Guajiro Solar project is expected to begin operations in the second quarter of 2019. The plant will span over 410 hectares in Nopala de Villagrán, located in the state of Hidalgo. Guajiro Solar estimates it will generate 300 GWh annually, equivalent to the demand of roughly 120,000 homes. Atlas Renewable Energy estimates that the operation of the project will prevent the annual emission of more than 215,000 tons of carbon dioxide, which is equivalent to eliminating more than 46,000 cars from circulation.
“The financing of the Guajiro Solar project marks an important milestone for Atlas Renewable Energy and consolidates Mexico as one of our main markets” said Carlos Barrera, CEO of Atlas Renewable Energy. “It also strengthens our track-record of successful renewable energy project financings throughout Latin America. As we continue to grow, we will look for other opportunities to partner again with leading financial institutions such as Bancomext and government entities such as CFE”.
Camilo Serrano, general manager of Atlas Renewable Energy for Mexico, added that the project demonstrates a collaboration of public and private interests to increase the presence of renewable energy in Mexico and that the company will look for more opportunities to expand Atlas Renewable Energy’s footprint in Mexico.
As its first solar energy project in Mexico, Guajiro is part of Atlas Renewable Energy’s growth strategy to deepen its position in Mexico, a core market for Atlas Renewable Energy. The company launched its regional expansion in last year, with the inauguration of a plant in Chile that generates 110 MW, and the acquisition of an operating 70 MW plant in the North of Chile. In July of this year, the company raised a green bond for two of its operating plants in Uruguay, and currently the company is in construction and advance development stage for several photovoltaic plants in Brazil with a total capacity of 450 MW.
Bancomext considers the energy sector strategic for the development of the country, so it has a programme for the financing of renewable energy projects through the granting of long-term resources, in local currency or US dollars, to support companies during the construction, operation, and maintenance stages of the projects.
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