Neoen closes financing of 11 MW/8 MWh of batteries for Capella and Providencia solar farms

Neoen has completed financial close for two new batteries with a total capacity of 11 MW / 8 MWh that will provide primary and secondary reserve services for its Capella (140 MWp) and Providencia (101 MWp) solar plants, in the departments of Usulután and La Paz, respectively.

The non-recourse debt for the batteries will be provided by IDB Invest, with the resources from the Canadian Climate Fund for the Private Sector of the Americas – Phase II (C2F2). The repayment schedule of the financing is linked to the operational savings the batteries will generate for the two solar farms. In line with its business model, the company will retain 100% ownership of the assets.

The consortium comprising TSK Electrónica and Gensun was chosen for the engineering, procurement and construction (EPC) of the batteries. Construction has already commenced, with commissioning scheduled for the second quarter of 2022. The batteries will reduce CO2 emissions by 5,000 metric tonnes per year, avoiding the use of fossil fuel power plants for ancillary services.