Wind Project in Mexico Draws International Financing, Acciona Says
With lots of promise but little steel in the ground, Mexico moved a step closer to getting additional wind generation projects as Spain's Acciona Energy said Wednesday that 10 international sources have committed a combined $375 million to its existing 250.5 MW wind project in the state of Oaxaca.
Acciona said it is the biggest credit deal ever signed in Latin America for a renewable energy facility and paves the way for three other wind projects in the area.
Acciona said it was recently granted the approvals to construct and operate another three wind projects in Oaxaca with a total capacity of 306 MW and an investment of around $562 million. The construction of the projects, located near Acciona's existing Eurus facility, will begin in the second half of this year and will start commercial operation by December next year, Acciona said.
Acciona calls its developments "windparks," and it is tying their development to heavy industrial power needs near its sites. The company called the new financing arrangement involving the International Finance Corp. (IFC) a model for renewable projects in developing nations.
With the highest installed capacity in Latin America, The Eurus project's production will cover up to 25% of the electricity supply needs of the cement plants of Cemex in Mexico. The windpark's renewable production will avoid the emission of around 600,000 tons of carbon dioxide (CO2) annually, Acciona said.
The financing agreements for the windpark were signed by global and regional entities such as the IFC, which reports to the World Bank, Banco Interamericano de Desarrollo and Corporacion Financiera Andina, the main source of multilateral financing in the region, Acciona said.
The group of signatories also includes the Mexican companies Nacional Financiera and Banco Interamericano de Comercio Exterior; the Instituto de Credito Oficial of Spain, the French company Promotion et Participation pour la Cooperation Economique, and Deutsche Investitions und Entwicklungs Gesellschaft from Germany.
Two private institutions complete the list of financing entities. Acciona described the pair as BBVA and Banco Spirito Santo.
"The total sum financed, the country in which the funds are materialized and the type of entities participating in the operation make this a singular agreement in line with the new financing scenarios for this type of installation in developing countries," an Acciona spokesperson said. The multi-party financing agreement is "part of the objective of the Mexican government to diversify its energy mix and reduce the country's emissions of greenhouse gases."
Through a program launched in 2008 the Mexican government set a goal of reducing CO2 emissions by 50% in 2050 against the level recorded in 2000.