Spanish energy and water infrastructure group Cox has secured financing for a 75.2MWp solar PV project in Guatemala.
The Chiquimulilla solar project, located in the municipality of Chiquimulilla in Guatemala’s Santa Rosa department, will be among the largest photovoltaic plants in the country.
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The project will be developed in two phases and is backed by 15-year power purchase agreements (PPAs) with Guatemalan utilities Empresa Eléctrica de Guatemala (EEGSA) and Distribuidora de Electricidad de Occidente (DEOCSA).
The PPAs were awarded through Guatemala’s PEG-4 procurement process, providing long-term revenue certainty and supporting renewable power integration.
PEG-4 is Guatemala’s fourth long-term power procurement tender under the country’s Generation Expansion Plan. Managed by the National Electric Energy Commission (CNEE), the 2022 tender awards long-term PPAs of up to 15 years to supply the country’s main electricity distributors, including EEGSA and Energuate.
The procurement prioritises new renewable generation, with at least 50% of the contracted guaranteed capacity required to come from renewable sources.
“The Chiquimulilla project reflects our ability to identify, develop and execute strategic infrastructure projects that respond to the energy needs of the markets in which we operate. Guatemala has significant potential for renewable generation, and this photovoltaic project will help accelerate the country’s energy transition while further strengthening our position in Central America,” said Luis Manresa, director of business development – energy for Cox’s Central Arc (Central America, the Caribbean, Colombia and Ecuador).
The project is being financed by a consortium of financial institutions led by CIFI, which is acting as arranger and lead syndication agent and is also providing financing from its own resources.
Other lenders include the Sustainable Infrastructure Debt Fund (SIDF), managed by CIFI Asset Management, as well as BICSA and Banco Aliado. Banco Aliado is also acting as facility agent and administrative agent for payments under the financing facility.
The project is in an area of Guatemala with high solar irradiation levels, which Cox said would support the development of competitive renewable power generation.
The Chiquimulilla project forms part of Cox’s wider expansion strategy in Latin America, where the company is developing infrastructure projects across the energy and water sectors.
Recently, the firm finalised its US$4 billion acquisition of Iberdrola’s Mexican subsidiary, adding a 12GW renewable energy pipeline to its portfolio. The deal, first announced last August, included Iberdrola Mexico’s operational portfolio of 1.4GW of gas and cogeneration, 642MW of solar and 590MW of onshore wind capacity.
