Neoen signs PPA for 136MW of solar with Central America’s lowest tariff

Facebook
Twitter
LinkedIn
Reddit
Email
This week distribution companies had also signed contracts for 169.9 MW of wind and solar projects. Flickr: Nicholas Raymond

UPDATED: French renewables developer Neoen has signed a power purchase agreement (PPA) for 136MW of utility-scale solar PV in El Salvador.

One of the country’s largest utilities Delsur previously launched the tender for 25 solar and four wind projects, of which Neoen won two PV projects standing at 68MW each, according to a Neoen release.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The 20-year PPAs were signed with local distribution companies Delsur, AES, EDESAL and B&D with tariffs of US$0.04955/kWh and US$0.04956/kWh – the lowest for PV in Central America to date.

Last week, El Salvador’s National Energy Commission (CNE) announced that seven distribution companies had signed contracts for 169.9 MW of wind and solar projects in the departments of Sonsonate, Usulutan, La Paz and Santa Ana.

The average price for solar was US$0.05148/kWh. The projects will also require US$340 million investment. Solar projects are to start generating electricity by 1 April 2019. All developers will be investing 3% of project revenue in local social development.

This tender in El Salvador awarded:

  • Two 50MWac projects to Neoen at a price of US$0.04955/kWh
  • One 9.9MWac project to Asocio Ecosolar (Sybac) project at a price of US$0.05498/kWh
  • One 10MWac project to Sonsonate Energia (Real Infra) project at a price of US$0.06724/kWh
  • One 50MW wind project to Tracia Networks at a price of US$0.09878/kWh

Neoen subsidiary Providencia Solar won a 101MW solar project in a 2014 tender also in El Salvador. That project has now closed on financing and is under construction, with operation due to start in April this year.

Paolo Cartagena, in charge of Neoen project development in El Salvador, said: “Neoen is proud to have won such a competitive tender and to continue to play such an important role in the growth of El Salvador’s renewable energy mix. We will build on Providencia Solar’s success and experience to generate synergies and make Capella Solar another landmark project in Central America.”

Read Next

June 27, 2025
Statkraft has signed PPAs with Better Energy to purchase energy from two solar power plants in Poland with a total capacity of 64GWh.
June 27, 2025
Solar developer Lightsource bp has signed a power purchase agreement (PPA) with a subsidiary of Taiwanese energy firm HD Renewable Energy (HDRE).
June 24, 2025
Independent power producer (IPP) Enery Development has formed a 50-50 joint venture (JV) with Romanian oil and gas producer OMV Petrom to build a 400MW solar PV plant in Bulgaria.
June 23, 2025
The volume of power purchase agreements signed in May has registered a low of 280MW, according to Swiss consultancy Pexapark.
June 20, 2025
Akuo has signed a 15-year power purchase agreement (PPA) with Imerys to develop a solar power plant in Texas.
June 16, 2025
Amazon plans to invest AU$20 billion to expand Australia’s data centre infrastructure, with utility-scale solar PV plants set to power these.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece