Chile-based Verano Capital has won the rights to develop a 100MW solar project in Argentina through the country’s renewable energy tender.
The project named as VeCaSo-1 won with a bid of $42.50/MWh.
The VeCaSo-1 solar project will be built near Mendoza and is slated to be completed in 2019. It will be backed by a 20-year “take-or-pay” power purchase agreement (PPA).
The Chilean company won 18% of the solar capacity that was placed in auction named as RenovAr program. The energy tender in Argentina saw bidding for a total of 1.2GW of projects, out of which 450MW was allocated to solar power.
Verano Capital Argentina country manager Ramiro Marquesini said: “This major win is yet another big step towards our goal of consolidating our leading position in the South American market.
“We have a growing pipeline of projects with more than 450 MW in Argentina alone, and hope to replicate our efforts in this project in the future. We have all the skills required to deliver turnkey quality projects, as well as the experience and agility needed to navigate the Latin American energy sector very effectively.”
According to Verano, the generator takes on the production risk within the PPA framework, with the solar plant expected to generate power on a must-run basis.
On the other hand, Argentina’s national utility company CAMMESA is responsible to integrate all of the output from the solar plant or cancel compensatory energy payments if it fails in its commitment.
Founded in 2012, Verano Capital focuses on developing renewable energy projects with focus on the Latin American market, especially in Chile and Argentina.
Image: Verano Capital will develop the VeCaSo-1 solar plant near Mendoza. Photo: courtesy of Verano Capital.