Friday, 23 July 2021 13:23

Neoen signs financing to add 11 MW / 8 MWh of batteries to its solar plants in El Salvador

Written by Alondra Gutiérrez

Neoen completed financing for two additional batteries totaling 11 MW / 8 MWh, which will operate within its Capella (140 MWp) and Providencia (101 MWp) solar power plants in El Salvador.

Neoen, one of the world's most dynamic renewable energy producers, signed financing to add 11 MW / 8 MWh in two additional batteries that will provide primary and secondary backup services at its Capella (140 MWp) and Providencia (101 MWp) solar projects, located in the departments of Usulután and La Paz, respectively.

With these new additions, Neoen will reach a total capacity of 14 MW in El Salvador and a storage of 10 megawatt-hours (MWh), positioning itself as the largest battery operator in Central America.

The non-recourse financing for these batteries will be provided by IDB Invest with resources from the Canadian Private Sector Climate Fund for the Americas - Phase II (C2F2).

This financing presents a repayment scheme linked to the operational savings of both solar plants generated by the use of the batteries. True to its model, Neoen owns 100% of the assets.

Neoen started in El Salvador in 2014 and has invested close to $300 million in its solar and storage plants, which will now reach a total capacity of 255 MW.

To date, Neoen's plants are the largest in Central America. They supply 7% of wholesale market demand and deliver the most competitive energy in El Salvador.

"Our local roots and our history in El Salvador have allowed us to work on increasingly relevant solutions. We are convinced that batteries are the perfect and necessary complement to catalyze the growth of renewable energy in El Salvador. That is why we are grateful for the support of C2F2 and the IDB Group to achieve this common goal", said Paolo Cartagena, general manager of Neoen in El Salvador.

Neoen is one of the world's most dynamic independent renewable power producers (IPPs). Neoen has more than 4.1 GW of solar, wind and storage capacity in operation or under construction in Australia, France, Finland, Mexico, El Salvador, Argentina, Ireland, Jamaica, Mozambique, Portugal and Zambia. The company is also present in Croatia, Ecuador, Sweden and the United States.