Neoen gets debt financing for 375-MW Mexican solar project

French renewable energy projects developer Neoen has obtained some USD 280 million (EUR 247.5m) in senior debt to support its 375-MW El Llano solar project in the central Mexican state of Aguascalientes.

The financing agreements were signed with Bancomext, Natixis SA (EPA:KN) and Societe Generale (EPA:GLE), Neoen announced last week. The renewables developer won the project in the third Mexican renewable energy auction in November 2017, with a tariff of USD 18.93 per MWh.

To be located near the town of Aguascalientes, the photovoltaic (PV) park will be connected directly to the high-voltage network of Comision Federal de Electricidad (CFE). About 70% of its output will be sold at a fixed price to a consortium comprising CFE SSB, utility Iberdrola Clientes, and Menkent, a unit of local cement maker Cemex. The tie-up will buy the generated electricity for 15 years and related clean energy certificates for 20 years. The remaining power will be sold on the Mexican electricity market.

Sinohydro, a subsidiary of PowerChina, and Novamper, a subsidiary of Prodiel, will be in charge of building El Llano and will also operate and maintain it following commissioning. The plant will be equipped with over 1 million monocrystalline modules by Longi Solar and Hanwha Q Cells, mounted on Soltec trackers.

The project is the largest one in Neoen’s asset portfolio so far, the company said.

(USD 1.0 = EUR 0.884)

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