Northland takes FID on 130-MW Mexican solar project

Canada-based Northland Power Inc (TSE:NPI) has taken a final investment decision (FID) on its 130-MW La Lucha solar project in Mexico and plans to launch construction shortly.

To be located in the state of Durango, the photovoltaic (PV) project will require an investment of CAD 190 million (USD 140.9m/EUR 126m), Northland said on Tuesday. The Canadian firm will initially back its construction through a combination of cash and debt, while subsequently, it will use non-recourse project financing, once power purchase agreements (PPAs) are in place.

The solar park is expected to become operational in the second half of next year. Presently, the project is fully permitted and its construction is planned to advance while off-take deals are negotiated, Northland said.

“The robust fundamentals of Mexico’s power markets give us the confidence to build La Lucha as our first attractive investment opportunity in the country,” said Javier Chavarria, managing director, development for Latin America. He added that the interest from industrial players to meet some of their electricity demand from plants like La Lucha is “significant.”

(CAD 1.0 = USD 0.742/EUR 0.663)

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