Spanish company Fotowatio Renewable Ventures (FRV) has reached financial close for the 342MW dc Potosi Solar Farm in Mexico.
The project will be located 60km northeast of the city of Zacatecas in the state of San Luis de Potosí.
FRV, a developer of renewable utility-scale projects, closed the financing agreement with KFW (Kreditanstalt für Wiederaufbau), Bancomext and ING.
The Potosi Solar Farm project, the first to be operated by FRV in Mexico, was awarded in the second auction held by the National Center for Energy Control (CENACE) in September 2016.
A power purchase agreement (PPA) was finalised with CFE Suministro Basico in March 2017.
Potosí Solar Farm will be connected to the national electricity grid and will generate energy to power 150,000 households.
The plant is expected to reduce greenhouse gas emissions by 600,000 tonnes of CO2 per year.
Potosí Solar Farm will have an extension of approximately 800 hectares.
TSK will construct the solar plant under an EPC contract. Work on the project will begin in early 2018 and the plant is expected to be operational by early 2019.
The project is expected to create 300 jobs during the construction phase and 17 of these could be maintained once the plant becomes operational.
FRV CEO Rafael Benjumea said: “Mexico has enormous renewables potential. That is why we are committed to bringing clean energy and job creation in the country.
“This particular project will contribute to socio-economic development and allow us to continue leading international trends in the production of clean, competitive and sustainable energy.
“The tenders run by CENACE for long-term PPAs with CFE Suministro Basico have proven to be a very successful mechanism to contract the energy produced by the renewable energy plants.
“This is decreasing Mexico’s CO2 footprint, helping to reach the country’s goal of 35% of the energy generated by renewable energy in 2024, and achieving record prices which will have a positive impact in the Mexican electricity prices.”