Canadian Solar has secured $50m in long term financing from CAF - Development Bank of Latin America (CAF) for its 100MW solar power project in Cafayate, Salta Province, Argentina.
Canadian Solar will receive $30m in CAF A-loan with a 15 year tenor along with $15m parallel loan from the Argentinian Development Bank of Investment and Foreign Trade (BICE) with 15 year tenor. The remaining $5m will be provided as a parallel loan from the Bank of the City of Buenos Aires (Banco de la Ciudad) with 10 year tenor.
CAF and Canadian Solar have a target of securing $75m and are seeking additional $25m in senior financing which is expected to close in early next year.
This solar project is being financed under the RenovAR program, which was launched by the Argentinean government in 2016 to bring the share of renewable to 20% in the whole energy mix by 2025.
The program includes 20 year power purchase agreement (PPA) with indexation, fiscal incentives for investment in projects and a three-level guarantee mechanism.
The Cafayate solar project secured $56.28/MWh PPA during the second renewable public tender (RenovAR 1.5). Presently, it is under construction and is expected to begin commercial operation during next year’s second quarter.
For this project the company is using its MaxPower CS6U-P 345 W modules. Once installed and energized, this solar plant is expected to generate nearly 239,696MWh of clean electricity per year. This energy will be sold to CAMMESA, a national wholesale power market administrator and clearinghouse.
Canadian Solar chairman and CEO Shawn Qu said: “We are delighted to secure high-quality, long-term financing of up to 15 years which is a testament to the success of the Argentina government and the World Bank in designing a robust RenovAR program. The program is expected to attract $15bn in renewable energy investments over the next decade in Argentina.
“We value our partnership with leading financial institutions across Argentina and Latin America to promote the growth of clean renewable energy in the region.”