Neoen signs financing for 375 MW El Llano project in Aguascalientes

Neoen has announced the signature of financing for the El Llano project, a 375MWp solar project in the state of Aguascalientes in Mexico.

Located 20km east of the town of Aguascalientes, state of Aguascalientes, in the center of Mexico, El Llano will cover 800 hectares of flat land. It will be connected directly to Comisión Federal de Electricidad’s (CFE) high-voltage network. As one of the winners of the 3rd government renewable energy auction in November 2017, El Llano will sell around 70% of the electricity produced at a fixed, indexed price of USD18.93/MWh (price corresponding to electricity plus green energy certificates) to a consortium consisting of CFE SSB (a public body), Iberdrola Clientes (a utility company) and Menkent (a subsidiary of cement-maker Cemex).

The purchasing contract will last 15 years for electricity and 20 years for clean energy certificates from its activation date at the end of the second quarter of 2020. The remainder of the electricity produced will be sold directly on the Mexican electricity market.

Sinohydro, a subsidiary of PowerChina, and Novamper, a subsidiary of Prodiel, will build the project under a turnkey contract. El Llano will use more than a million monocrystalline modules fitted to Soltec trackers to be supplied in two equal lots by Longi and Hanwha Q Cells. At its peak, construction of the project will employ up to 820 people, the vast majority of whom will come from the Aguascalientes region, thus stimulating and diversifying the local economy. Operation and maintenance of the project will be managed by Sinohydro and Novamper once the plant comes into service.

Bancomext, Natixis and Société Générale, as joint mandated lead arrangers, lenders, and bookrunners will provide the project’s senior debt for total investment, excluding financing costs of $280 million.

Astris Finance, Norton Rose Fullbright, EOS, PwC, Deloitte, Pöyry, Beecher Carlson and Ester advised the project company on behalf of Neoen. Ritch, Mueller, SC, Shearman & Sterling, UL, Natura, KPMG and Mandy McNeil International advised the lenders.