Cubico closes financing for 350 MW PV plant in Mexico

British renewable energy infrastructure company Cubico Sustainable Investments has reached financial close for a 250 MW wind power plant and a 350 MW solar facility in Mexico.

The company says it has raised $450 million in debt, of which $220 million will be used for the wind project, and $230 million for the PV plant. Funds for the solar project were provided by the Inter-American Investment Corporation, acting on behalf of the Inter-American Development Bank (IDB) Group, together with the Canadian Climate Fund for the Private Sector in the Americas and the China Co-Financing Fund for Latin America & the Caribbean, the International Finance Corporation, Bancomext, Banobras and Mitsubishi UFJ Financial Group (MUFG).

The Cubico Alten Aguascalientes Solar PV Project, which was selected in the energy auction held by the Mexican government in September 2016, is located in the municipality of El Llano, in the central Mexican state of Aguascalientes. The plant is being developed by Cubico’s minority partner Alten Renewable Energy.

According to the IDB, the project will consist of two solar plants, named Solem I and Solem II respectively, two electrical substations, and a 6.6 km 230 kV power transmission line connecting both substations to the Mexican utility Comisión Federal de Electricidad (CFE). Total project costs amount to around $368.0 million.

The plant was awarded a 20-year PPA by the Mexican Federal Electricity Agency, Centro Nacional de Control de Energia (CENACE) for the Clean Energy Certificates (CELs) and 15-year PPA for energy and capacity. The Solem I plant is expected to start delivering power at the end of September 2018, while the Solem II facility is planned to become operational at the end of June 2019.