Atlas Renewable Energy is moving forward with the US$350mn La Pimienta solar park in Mexico’s Campechestate, which suggests investors remain upbeat about renewables in the country despite uncertainty over COVID-19.
The planned 444MW solar park will be paired with 2.17km of transmission lines and associated interconnection facilities, according to IDB Invest, the investment arm of the International Development Bank (IDB). IDB Invest, which tracks the project under ID 12893-01, plans to provide financing through an A-loan of up to US$50mn and a B-loan will bring capital through international bond sales.
“The project has a long-term power purchase agreement that will contribute to achieving the objectives of the government of Mexico to diversify its electricity matrix by delivering clean PV solar energy and supporting the impulse to create a wholesale electricity market while reducing the country’s dependence on thermal energy, since Mexico’s objective is that in 2050 clean energy sources provide 50% of the electricity generation combination,” IDB Invest said.
Development bank Bancomext is also considering to provide financing. The board will decide on the proposed bond financing on July 14.
In November of 2018, environmental regulator Semarnat approved La Pimienta’s environmental impact assessment.