IDB Invest, a member of the Inter-American Development Bank (IDB) Group, provided a $34.9 million financing package for the construction and maintenance of a 200MW photovoltaic solar plant, located in the city of Navojoa in the state of Sonora, in Mexico. The project is developed by the company X-Elio, a global leader in photovoltaic solar energy.
This photovoltaic plant will contribute to the economic growth of Mexico by adding a more competitive source of energy, increasing the installed capacity of non-conventional renewable energy and diversifying the country's energy matrix. The project will displace the equivalent of 5.1 million tons of carbon dioxide in the next 25 years.
IDB Invest’s financial package consists of the combination of a $34.9 million loan, which includes the mobilization of $11.6 million from the Chinese Fund for the Co-financing of the Americas, plus another two additional loans, one of $33 million from local development bank Bancomext and another of $33 million from ING Bank, N.V.
Navojoa was awarded in the third long-term bid convened by the National Energy Control Center of Mexico (CENACE, for its acronym in Spanish) and is the first to include private buyers. Currently, it has signed a Power Purchase Agreement (PPA) for three products: 15 years for the sale of energy and of power generated, and 20 years for clean energy certificates.
The project is part of the closed operations in accordance to the Electricity Industry Law of Mexico, effective since August 2014, which establishes a restructuring of the country's energy industry. The objective is to generate 35 percent of Mexico's electricity cleanly in 2024, while reducing costs and tariffs, decreasing the carbon footprint and encouraging the participation of the private sector and transparency in the sector.
The participation of IDB Invest strengthens the regulatory framework and allows the mobilization of capital, favoring the participation of the private sector in the operation. In addition, IDB Invest reinforces the sustainability of the project by promoting the adoption of high environmental and social standards.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a portfolio of assets of $12.1 billion under management and 329 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the needs of its clients.
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 2018 it reached revenues of more than 130 million euros. With cumulative experience of more than 1,900 MW in solar photovoltaic plants, it currently has 23 solar parks in operation and presence in 13 countries. The group is a leader in the global renewable and sustainable energy industry, with a firm commitment to reducing greenhouse gases and fighting climate change.