Malaysia-based independent power producer (IPP) Yinson Renewables has completed a US$59 million green financing deal for a 97MWp solar PV plant in Peru.
Located in the southern region of Arequipa, the Matarani Solar Plant has been in power export and sales operation since July of this year, before reaching full operations in September 2024. A long-term power purchase agreement (PPA) has been agreed with Peruvian renewables supplier Orygen for power generated at the project .
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Financing for the Peruvian solar PV plant was secured with financial institutions IDB Invest and Natixis Corporate & Investment Banking (CIB). Natixis CIB acted as the sole structuring bank, green loan coordinator and joint lead arranger, alongside IDB Invest.
According to the IPP, the project is the first non-subsidised operational PV plant to secure financing through a green project finance facility.
The project was acquired earlier this year from Spanish IPP Grenergy Renewables. Grenergy also provided the full-turnkey engineering, procurement, and construction (EPC) contract for the construction of the solar plant, and will provide operations and maintenance services for the first two years.
Aside from the Matarani solar plant, Yinson Renewables owns a 130MWp project, at which it expects to start construction by the end of 2024. Across Latin America, the Malaysian-based IPP aims to build a 1GW pipeline of projects in the next three to five years.
The Matarana Solar Project is the fourth utility-scale solar PV operational project for Yinson Renewables, and its first in Latin America. The three other plants are located in India. All four PV plants have a combined operational capacity of 557MW.
The IPP is present in three regions – Latin America, Europe and Asia-Pacific – with a development pipeline of 1.7GW and over 3GW of projects in early-stages opportunities.
Growing interest in Peruvian solar
Interest in the solar PV market in Peru has been on the rise lately with other IPPs setting targets to build capacity in the country. Renewable energy infrastructure investor Actis launched a new IPP in Peru earlier this year, with the aim to develop 12GW of energy capacity in the country, while power generator Inkia Energy announced a solar PV expansion in Peru last month, with over 1GW of operational capacity set to be in place by the end of 2025.
In a conversation with PV Tech Premium earlier this year, the CEO of renewables developer Verano Energy said that Peru’s potential was “under the radar”, with the country having huge potential for renewables and the production of green ammonia.
Vegard Urnes, chief financial officer at Yinson Renewables, said: “We look forward to continue our work in Peru and beyond, leveraging these strong partnerships to drive future projects that contribute to a greener and more resilient energy landscape.”
