Spanish T-Solar Group, a major operator in the solar photovoltaic power generation market, has signed three loan agreements for a total of $145mn to finance two photovoltaic power plants with an aggregate capacity of 44 MW in Peru.
The two plants will be the first large-scale solar photovoltaic energy projects in Latin America. 113,600 thin-film amorphous hydrogenated-silicon modules produced by T-Solar’s Ourense (Spain) factory will be deployed over 206 hectares of land in the Arequipa region in southern Peru. Isolux Corsan, T-Solar’s parent company, has been retained as EPC contractor and will carry out construction works.
Latin America is an important target market for T-Solar. Given the region’s high level of solar irraditaion and in the context of an increasing focus on energy transition and renewable energy, T-Solar expects the continent’s strongest economies to provide interesting oportunities in the photovoltaic sector in the next five years.
The two solar plants are expected to produce 80 GWh a year, enough electricity to supply 80,000 people. The project construction will generate over 160 direct jobs amongst the local population. The plants are expected to be connected to the national grid by the second semester of 2012.
The total capital expenditure for the two projects is over $165mn. The Overseas Private Investment Corporation (OPIC), a US government agency promoting sustainable US investment abroad, will provide up to $131mn in senior debt, partially guaranteed by Assured Guarantee, a US credit insurance company. The Netherlands’ FMO and France’s PROPARCO will lend up to $14.3mn in mezzanine debt. T-Solar will fund the balance through equity. T-Solar was advised by Astris Finance, a US-based transaction advisory firm specialised in infrastructure and energy in emerging markets.