Scatec Solar has signed a share purchase agreement with Norfund to acquire the 53 MW Los Prados PV project in Honduras. Total capital expenditure will be around US$100 million, and will be funded by 75% non-recourse project finance debt.
Scatec said project financing, which is set to close early next year, is expected to come from the Central American Bank of Economic Integration (CABEI) and Export Credit Norway, with guarantee from the Norwegian Export Credit Guarantee Institute. Overall, it will own 70% of the project, while Norfund will own the remaining 30%.
The solar PV plant will be located in the southern Choluteca region of Honduras. Construction work is set to begin immediately, with commercial operation scheduled for Q3 2016. A 20 year PPA has been signed with government-owned utility, Empresa nacional de Energía Eléctrica (ENEE).
"With this new project, we are further strengthening our position in the Honduran and Latin American solar market. It is great that we can build on the 60 MW Agua Fria project to execute another 53 MW in the country," commented Raymond Carlsen, CEO of Scatec Solar.
In addition to the Los Prados project, Scatec is also currently working on the 60 MW Agua Fria plant in the municipality of Nacaome in the Valle Department of Honduras. It is set to come online the second half of this year and will represent Scatecs first PV plant in Latin America.
In Q1, Honduras saw 301 MW of solar PV installed across seven projects, and is expected to usurp Mexico as the second largest solar market in Latin America this year, predicts GTM Research.