Skip to main content

Neoen reaches financial close for two solar farm batteries in El Salvador

Published by
Energy Global,


Neoen, an independent producer of renewable energy, has completed financial close for two new batteries with a total capacity of 11 MW/8 MWh that will provide primary and secondary reserve services for its Capella (140 MWp) and Providencia (101 MWp) solar plants, in the departments of Usulután and La Paz, respectively. This additional capacity will take the total power of the company’s batteries in El Salvador to 14 MW and total storage capacity to 10 MWh, positioning Neoen as one of the largest operators of batteries in Central America.

The non-recourse debt for the batteries will be provided by IDB Invest, with the resources from the Canadian Climate Fund for the Private Sector of the Americas – Phase II (C2F2). The repayment schedule of the financing is linked to the operational savings the batteries will generate for the two solar farms. In line with its business model, the company will retain 100% ownership of the assets.

The consortium comprising TSK Electrónica and Gensun was chosen for the engineering, procurement and construction (EPC) of the batteries. Construction has already commenced, with commissioning scheduled for 2Q2022. The batteries’ millisecond response time will boost the quality of the primary and secondary reserve services, improving the stability and reliability of the electrical grid. The batteries will also reduce CO2 emissions by an estimated 5000 tpy, avoiding the use of fossil fuel power plants for ancillary services.

Neoen has been present in El Salvador since 2014 and has invested approximately US$300 million in solar farms and storage facilities. This latest development increases its total capacity to 255 MW. The company’s plants are currently the largest in Central America. They supply 7% of demand from the wholesale market and provide the most competitive energy in El Salvador.

 

 

For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.

Energy Global's Summer 2021 issue

The Summer issue of Energy Global features a varied spectrum of in-depth technical articles detailing recent projects, future projections, and technological advancements in the renewables sector, from companies including CEWEP, Enel Green Power, Turboden S.p.A., Cornwall Insight, and more.

Read the article online at: https://www.energyglobal.com/solar/23072021/neoen-reaches-financial-close-for-two-solar-farm-batteries-in-el-salvador/

You might also like

 
 

Embed article link: (copy the HTML code below):