August 27 (Renewables Now) - Atlas Renewable Energy said today it has closed long-term financing for its 129.5-MWp Guajiro solar project in Mexico.
The Latin America-focused company, created last year and backed by private equity investor Actis, has signed a long-term financing agreement with Mexico's Banco de Comercio Exterior (Bancomext), which will provide USD 88.5 million (EUR 76.2m) to fund the construction of the project, as well as a USD-17-million line of credit for value added tax (VAT).
Located in Nopala de Villagran, in the state of Hidalgo, the solar power plant is expected to come on stream in the second quarter of 2019. It is projected to produce 300 GWh a year, enough to meet the needs of about 120,000 homes, according to the announcement.
The project secured a power purchase agreement (PPA) with Mexico's federal electricity company, the Federal Electricity Commission (CFE), in the country's first long-term energy auction in 2016. It is the first solar energy project in Mexico for Atlas Renewable Energy, but the company aims to beef up its position in this market. It is also active in Chile, Uruguay and Brazil and currently has a total portfolio of more than 800 MW of projects in development, construction or operation.
(USD 1 = EUR 0.861)