Copenhagen Infrastructure Partners (CIP), through its vehicle Growth Markets Fund II (GMF II), has approved this Thursday the final investment decision and the financial closing to build in Mexico the plant "La Esperanza Solar", with a budget of 510 million dollars (441.9 million euros).
According to the firm in a statement, the photovoltaic development, with a power of 420 MWdc, will be integrated with a battery storage system of 150 MW and five hours of autonomy, thus reaching a total capacity of 750 MWh.
The complex will be built in the state of Campeche, in the south of the country, and will become CIP's first investment in Mexico that achieves financial closing, a "significant milestone" for the company in the deployment of its renewable portfolio in Latin America.
Construction has already begun and commercial operation is expected to start in 2028. From then on, the project will strengthen the security and flexibility of the electricity supply in the Yucatán Peninsula. The battery system of "La Esperanza Solar" will be among the largest in Mexico and will help stabilize the grid by injecting clean energy when needed.
The 510 million dollars are financed through debt lines granted by a banking syndicate formed by BNP Paribas, JPMorgan Chase Bank, Natixis CIB, Banco Santander, and Scotiabank.
The equity will be provided by the project's shareholders, among which is CI Growth Markets Fund II, along with the expected co-investment from Profuturo, one of the largest pension fund managers in the country.
The Ministry of Energy of Mexico (Sener) has classified "La Esperanza Solar" as a priority initiative within its national energy roadmap. In this context, the project has a long-term power purchase agreement (PPA) with CFE Calificados, a subsidiary of the Federal Electricity Commission (CFE) that serves large commercial and industrial consumers.
"This achievement reflects both the strength of the project and the team as well as the close collaboration established with contractors, authorities, and partners," expressed the director for Latin America and managing director of CIP, Peter Halmo.
"Combining solar generation with battery storage is essential to integrate a greater volume of renewable energies into the Mexican electrical grid. We are proud to contribute to the development of a more reliable electrical system with lower carbon emissions," he added.