Atlas Renewable Energy, a U.S.-based company that operates in Latin America, announced this week that financing for its first solar power plant in Mexico is complete with Banco de Comercio Exterior (Bancomext) having committed to finance the project.
Bancomext will provide $88.5 million dollars to finance the construction of the project, along with a $17 million dollars line of credit for Value Added Tax (VAT). The plant will have an installed capacity of approximately 129.5 MWp and will generate approximately 300 GWh annually according to the company.
The Guajiro Solar project is expected to begin operations in the second quarter of 2019. The plant will span over 410 hectares (1,013 acres) in Nopala de Villagrán, located in the state of Hidalgo.
The Federal Electricity Commission (CFE), Mexico’s federal electricity company signed a power purchase agreement (PPA) with the company after the first long-term energy auction, which carried out in 2016 as part of Mexico’s energy reform.
Camilo Serrano, general manager of Atlas Renewable Energy for Mexico, said that the project, “demonstrates a collaboration of public and private interests to increase the presence of renewable energy in Mexico” and added he company hopes to expand Atlas Renewable Energy’s footprint in Mexico.
Mexico intends to increase the amount of clean energy sources to 35 percent by 2024 and 50 percent by 2050.