The Mexican Environment Ministry has confirmed it is in talks with an unnamed company to sign a power purchase agreement (PPA) that would support a new 30MW power plant.

Córdoba Ariel Wilson, director general of energy at the ministry (SEMARNAT), said the government was in the third round of talks with the company over a 25-year PPA for the project in the state of Tabasco.

"This farm will be Mexican-funded with German technology and is intended to be the largest photovoltaic farm in Latin America with a capacity of 30MW," he said.

Wilson also revealed that the power company involved in the talks had offered to donate the solar farm to the state of Tabasco at the end of the 25-year agreement free of charge.

The cost of the project is MXN1.2 billion (US$91.2 million) and it is estimated that it could be online before the end of 2014.

No further details on the manufacturers involved with the project have been provided.

A number of large solar farms are proposed in Latin America with several 100MW-plus developments mooted in Chile.

Solar has been hotly tipped in several Latin American countries but infrastructure and regulatory challenges remain.

Brazil recently announced solar projects would be eligible for the next round of its renewable energy auctions.