Neoen seals financing for 140 MW solar PV project in El Salvador

Neoen is announcing that it has sealed financing for Capella, a 140 MWp solar photovoltaic project in El Salvador. The facility is wholly-owned by Neoen and is due to be commissioned in early 2020.

FMO, the Dutch Development Bank, and IDB Invest, acting as co-lead arrangers, and Proparco are providing the senior debt for the project, representing a total investment of US$133 million. The figure includes the cost of a 3 MW/1.5 MWh LG Chem lithium-ion battery system, which will be installed by Nidec separately and connected to deliver grid services in order to smooth the integration of the renewable plant. The project will be built by a consortium consisting of TSK and Gensun.

Capella Solar was awarded a 20-year power purchase agreement denominated in US Dollars with local distributors Delsur, AES, EDESAL and B&D at the below-grid-parity price of US$49.6/MWh.

The project involves the construction, operation and maintenance of two photovoltaic power plants with a combined installed capacity of 140 MWp (100MWac) including a transmission line of 8.7 kilometers and other facilities interconnection, located in the municipalities of Puerto del Triunfo, Jiquilisco and Ozatlán, department of Usulután, El Salvador. 

 It will be connected to a 3 MW/1.5 MWh lithium-ion battery system, which will be installed separately and connected to deliver grid services in order to smooth the integration of the renewable plant.