IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, grants a $17.2 million financing package for the construction and maintenance of the Conejos-Medanos solar photovoltaic plant, which has a capacity of 80MW and is located in the state of Chihuahua, in Mexico. The project is developed by the company X-Elio, a global leader in photovoltaic solar energy.
The photovoltaic plant will contribute to increasing the installed capacity of unconventional renewable energy in Mexico and to diversifying the country’s energy matrix. The project will displace the equivalent of 1.8 million tons of carbon dioxide in the next 20 years. The electricity generated will be transferred to the subsidiary of the national network of the Federal Electricity Commission (CFE) in charge of servicing residential and small consumers at regulated rates.
The financial package consists of a $10 million IDB Invest loan and the mobilization of two more loans, including $3.8 million from the Canadian Climate Fund for the Private Sector of the Americas (C2F) and $3.4 million of the Chinese Fund for the Co-financing of the Americas. The financing also includes loans from the Official Credit Institute (ICO) and the MUFG Bank Ltd.
Conejos-Medanos, awarded in the second long-term auction convened by the National Center for Energy Control of Mexico (CENACE), has signed long-term purchase-sale contracts for products, specifically 20 years for clean energy certificates and 15 years for energy and power. The project is part of the first group of operations closed according to the Electricity Industry Law of Mexico, effective since August 2014, which establishes a restructuring of the energy industry. The objective of this new legislation is to reduce costs and tariffs, increase the use of clean energy to reduce the carbon footprint, and encourage the participation of the private sector, guaranteeing transparency in the sector.
The early participation of IDB Invest has contributed to strengthen the regulatory framework, has facilitated the mobilization of capital from both donor funds and other financial institutions such as Bank of Tokyo Mitsubishi UFG and the Official Credit Institute of Spain (ICO). It has also favored the creation of a more conducive environment to attract the participation of the private sector. In addition, IDB Invest strengthens the sustainability of the project by promoting the adoption of high environmental and social standards.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
About X-Elio Energy
X-ELIO is a company specialized in the development, construction, operation and maintenance of solar plants with presence in the United States, the Middle East, Japan, South Africa, Latin America (Mexico and Chile among others), Australia, Southeast Asia, Italy and Spain. In 2017 it reached revenues of more than 127 million euros. The group is a leader in the global renewable and sustainable energy industry and has accumulated solid experience in the construction of solar plants of more than 1.1 GW, with a firm commitment to reducing greenhouse gases and fighting against climate change.