This includes the financing of senior non-recourse debt through a 15-year export credit, guaranteed by the credit insurance company Euler Hermes, which provides 95 percent coverage. In addition, the World Bank will support the Fund for the Development of Renewable Energies (FODER) in a payment guarantee to back-stop ongoing payment obligations by the offtaker.
This project, which Grenergy bid on in July of 2017, is part of the RenovAr program, launched by the Argentine administration to meet the goal of covering 20 percent of the country's energy demand using renewable energy for the year 2025, a percentage that currently only stands at 2 percent.
The project is located in Chubut, a province of Patagonian Argentina that experiences more than 5,000 net hours of wind per year. It will be built by the German manufacturer, Senvion, and its start-up is expected by the end of the second quarter of 2019.
According to the CEO of Grenergy, David Ruiz de Andrés, "Our commitment to wind development in Argentina is decided by the enormous potential of this region in a very favorable context, after the Latin American country became in 2017 the second country in the world in which the investments in renewable energies grew the most, with an increase close to 800 percent, only behind the United Arab Emirates, according to Bloomberg’s data.”
