FMO finances 140 MW »Capella Solar« photovoltaic power plant in El Salvador

The Capella Solar project site in El Salvador

Netherlands Development Finance Company FMO, together with IDB Invest and Proparco announced the financing of »Capella Solar«, a 140 MW solar photovoltaic power plant in El Salvador. The facility will be connected to a 3 MW/1.5 MWh battery system, which is according to the company »the largest energy storage installation to be rolled out in Central America to date«. Three percent of the power plant’s annual revenues will go to FUSAL, a non-for-profit foundation that runs social projects in El Salvador. The facility is wholly-owned by French independent producer of renewable energy Neoen and is due to be commissioned in early 2020.
FMO and IDB Invest - acting as co-lead arrangers - and Proparco are providing the senior debt for the project, representing a total investment of $143 million. The figure includes the cost of the LG Chem lithium-ion battery. The project will be built by a consortium consisting of TSK and Gensun.
Neoen won the project through a competitive public-tender held in 2016 and organized by electricity distributor Del Sur. Capella Solar was awarded a 20-year power purchase agreement with local distributors Del Sur, AES, EDESAL and B&D at a price below grid parity of $49.6/MWh.
»Capella Solar« is the second project that Neoen will operate in El Salvador. In April 2017, Neoen connected a 101 MW PV plant in El Rosario, La Paz, to the grid, consisting of two parts: Part one with 76 MW has been awarded to Neoen via tender in 2014 and another 25 MW negotiated separately with Del Sur. Investment was $151 million.

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