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Press release from Atlas Renewable Energy
Atlas Renewable Energy and el Banco de Comercio Exterior (Bancomext) announced today the signing of a long-term financing agreement for Atlas Renewable Energy's solar power plant in Mexico, located in the state of Hidalgo.
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.
The project was awarded a power purchase agreement (PPA) with the Federal Electricity Commission (CFE), Mexico's federal electricity company, in the first long-term energy auction, carried out in 2016 as part of Mexico's energy reform.
The Guajiro Solar project is expected to begin operations in the second quarter of 2019. The plant will span over 410 hectares in Nopala de Villagrán, located in the state of Hidalgo. Guajiro Solar estimates it will generate 300 GWh annually, equivalent to the demand of roughly 120,000 homes. Atlas Renewable Energy estimates that the operation of the project will prevent the annual emission of more than 215,000 tons of carbon dioxide, which is equivalent to eliminating more than 46,000 cars from circulation.
Carlos Barrera, CEO of Atlas Renewable Energy, stated that "the financing of the Guajiro Solar project marks an important milestone for Atlas Renewable Energy and consolidates Mexico as one of our main markets. It also strengthens our track-record of successful renewable energy project financings throughout Latin America." He recognized Bancomext's management of this transaction and for the positive impact it has had in accelerating investment in renewable energy projects throughout Mexico. "As we continue to grow, we will look for other opportunities to partner again with leading financial institutions such as Bancomext and government entities such as CFE," he concluded.
Camilo Serrano, general manager of Atlas Renewable Energy for Mexico, emphasized that, "this project demonstrates a collaboration of public and private interests to increase the presence of renewable energy in Mexico" and commented that they will look for more opportunities to expand Atlas Renewable Energy's footprint in Mexico.
Francisco N. González Díaz, general director of Bancomext, highlighted that, "The Guajiro Solar project positions Atlas Renewable Energy as a reliable partner for investment and infrastructure development within the Mexican energy sector." This project will generate 300 GWh annually, while helping achieve the goal of generating 35% of Mexico's energy from renewable sources by 2024. Additionally, it provides an economic stimulus for the region. He added that "this type of financing is intended to continue supporting the development of projects aligned to the Federal Government's market strategy for renewable energy."
As its first solar energy project in Mexico, Guajiro is part of Atlas Renewable Energy's growth strategy to deepen its position in Mexico, a core market for Atlas Renewable Energy. The company launched its regional expansion in last year, with the inauguration of a plant in Chile that generates 110 MW, and the acquisition of an operating 70MW plant in the North of Chile. In July of this year, the company raised a green bond for two of its operating plants in Uruguay, and currently the company is in construction and advance development stage for several photovoltaic plants in Brazil with a total capacity of 450 MW.
Bancomext considers the energy sector strategic for the development of the country, so it has a program for the financing of renewable energy projects through the granting of long-term resources, in local currency or US dollars, to support companies during the construction, operation, and maintenance stages of the projects.