The government of the Argentinean province of Jujuy has announced that local government-run company Jemse SE (Jujuy Energy and Mining State Society) has begun construction of the 300 MW Cauchari solar project.
The ground-breaking ceremony was attended by the country’s president Mauricio Macri, the Minister of Energy and Mines Juan José Aranguren, the Minister of Finance Nicolás Dujovne, the Chinese ambassador Yang Wanming, and local governor Gerardo Morales.
The project is one of two PV projects totaling 400 MW selected in round one of the RenovAr program for large-scale solar and renewable energies. The plant will sell power to wholesale electric market management company Compañía Administradora del Mercado Mayorista Eléctrico (CAMMESA) at a price of $60 per MWh under a 20-year PPA.
Jemse owns an 80% stake in the project, while the remaining 20% is owned by Power China, Shanghai Electric and Talesun, which is building the plant.
The project is being financially supported by Chinese state-owned bank Export-Import Bank of China and by a $210 million bond that the Argentinean province of Jujuy issued in mid-September. The bond, which carries an 8.62% interest rate and five-year maturity, was offered on the NYSE and was 3.4 times oversubscribed.
In mid-June, the Department of Energy of Jujuy announced that the first solar modules deliveries for the projects would be completed in September.