Fotowatio Renewable Ventures and the World Bank’s International Finance Corporation have reached financial close on the 296MW Potrero solar farm in Mexico.
Financial close was reached with Banco Nacional de Comercio Exterior, with the plant expected to be fully operational by mid-2020.
Potrero will be located across 700 hectares at Lagos de Moreno in the state of Jalisco.
It will use bifacial photovoltaic modules that capture both direct sunlight on the front and reflected light on the rear.
The project will will generate around 700 gigawatt-hours of electricity a year.
Potrero is being built by a consortium formed of Power China and Prodiel and will generate up to 1500 jobs during construction.
Fotowatio Renewable Ventures, which is part of Abdul Latif Jameel Energy, said the project is its first in Mexico to be financed before having any of its components contracted.
Once operational, the plant will trade the electricity generated as well as the associated clean energy certificates on Mexico’s energy market.
FRV Mexico and Central America managing director Fernando Salinas said: “Mexico is a country that offers numerous opportunities for both FRV and international investors, due to its favourable market and weather conditions for renewable energy projects.
“Potrero’s financial close marks a milestone as the largest bifacial plant in the world and FRV’s first fully merchant project in Mexico.
“By carrying out this flagship project that will lead the way for other large-scale bifacial PV plants and that is also one of the largest PV merchant projects worldwide, FRV demonstrates its leadership once again and its ability to be a spearhead in the wider renewable energy industry.”
IFC Mexico country manager Ary Naim said: “IFC has a long history of supporting Mexico’s power sector.
“By financing one of the first fully merchant large generation projects in Mexico, IFC sends a signal of confidence in the newly created electricity market and demonstrates how projects can be structured without relying on long term contracts.”