German, Mexican state banks sign MOU to promote renewable energy

Share

Mexico’s National Bank of Foreign Commerce (Bancomext), the German Development Bank (KfW) and the Germany International Cooperation Agency (GIZ) have signed a memorandum of understanding (MOU) for the promotion of renewable energy, particularly solar energy, according to a Bancomext press release.

GIZ currently runs a program for promoting solar energy in Mexico, the “large scale solar energy” (DKTI) program. Bancomext plans to work in the framework of this program by helping financial institutions fund PV projects.

Although few large solar projects have been completed in Mexico to date, many are planned. In the first long-term auction, held in March, the nation awarded contracts representing 1.7 GW of solar projects.

Meanwhile, Germany is collaborating in the promotion of renewable energy in Mexico. Last April, Bancomext and KfW signed two credit agreements totaling US$190 million for renewable energy and energy efficiency projects.

Development and export banks have played an important role in financing many of the first large-scale solar projects in Latin America, most of which are in Chile. By mid-2014, the U.S. government’s Overseas Private Investment Corporation (OPIC), the Inter-American Development Bank and the World Bank had supplied over $1 billion for Chilean solar projects, with OPIC making up most of this.

Translation and additional reporting by Christian Roselund. For the original version of this article in Spanish, please see the pv magazine Latinoamérica website.