French renewables developer Neoen has shut down its 375MW El Lano solar project in Mexico after the government suspended testing for wind and PV projects due to COVID-19.
The company said the closure could cost up to $2m per month in lost EBITDA.
El Lano was completed earlier this year and was exporting power onto Mexico’s spot market while undergoing the pre-operational testing by the government’s grid operator CENACE, Neoen said.
A power purchase agreement was due to start in early July covering full power from the project, which has been built out at around $19 per megawatt-hour.
“Neoen stands ready to put the El Llano power plant back into service to recommence injecting power to the grid and resume pre-operational testing as soon as CENACE lifts its suspension,” said the developer.
“Neoen, which first moved into Mexico in 2013, remains firmly committed to supplying the country with green, reliable, and cost-competitive energy.”
CENACE has stopped testing due to the pandemic and the contraction in demand for electricity.