Company name

Capella Solar S.A. de C.V.

Project number

12232-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

El Salvador

Sector

Energy

Status

In implementation

Disclosed date

06/29/2018

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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07/31/2018

Approval date

08/01/2018

Signed date

11/27/2018

Sponsoring entity

Neoen S.A.S.

Team leader

Perez Salmeron, Ana Julia

Investment type

Syndicated amount

N/A

Financing amount

USD $ 30,000,000

Currency

USD

Project scope and objective

The project consists in the construction, operation and maintenance of two photovoltaic (PV) power plants (Albireo 1 and 2) with a combined installed capacity of 140 MWp (100MWac), including an 8.7-kilometer transmission line and other interconnection facilities, located in the municipalities of Puerto del Triunfo, Jiquilisco and Ozatlán, in the Department of Usulután, El Salvador (the “Project”).

The Project will benefit from 20-year US$ denominated PPAs at a price of around US$49.6MWh signed with the seven distribution companies. The PV plant will have an energy storage system based on a guaranteed 3 MW/1.5 MWh Battery Energy Storage System in order to comply with the El Salvador grid code of a 3% primary reserve service for primary regulation.

The Project is being developed by Neoen S.A.S. (the “Sponsor”) a French independent power producer. The estimated total cost of the Project is around US$144 million. It is anticipated that the financing will be structured through three Senior Loans from IDB Invest, FMO and Proparco of around US$30 million each. The rest of the financing will be funded with equity from the Sponsor.

The Project will provide significant and tangible benefits to El Salvador as (i) it will significantly increase the share of solar energy within El Salvador’s generation matrix; (ii) based on the auction price, the Project will contribute to reduce the electricity bills as the current PPA price is significantly below the current market average; and (iii) by investing 3% of the Project’s revenue in local social development programs, the Project will support local communities.

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.

ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY

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ENVIRONMENTAL AND SOCIAL ACTION PLAN - CAPELLA SOLAR PV.PDF

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CAPELLA SOLAR BESS - ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS).PDF

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CAPELLA SOLAR BESS - ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP).PDF

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Contact information

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Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Paolo Cartagena

POSITION

Director of Capella Solar

PHONE NUMBER

+503 2263-1292

EMAIL

paolo.cartagena@neoen.com

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices

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