- The award covers two battery storage systems (11 MW / 8 MWh) for Neoen’s Capella (140 MWp) and Providencia (101 MWp) solar farms in El Salvador
- The IJGlobal awards are an annual celebration of the best-in-class transactions and organisations across the international infrastructure and energy sectors
On 17 March, Neoen (ISIN: FR0011675362, ticker: NEOEN), one of the world’s leading producers of exclusively renewable energy, received international recognition from IJGlobal for Latam Battery Storage Deal of the Year. The prize was awarded by the specialist project and infrastructure finance magazine, at a ceremony in New York that brought together financers and developers from across the continent.
Every year, IJGlobal celebrates the best transactions and organisations in the energy and infrastructure sectors around the world. The award celebrates the innovation shown by Neoen in El Salvador to deliver the biggest battery project in Central America.
The project comprises two large battery systems providing a total of 11MW / 8 MWh(1) at Neoen’s Capella (140 MWp) and Providencia (101 MWp) solar farms. The batteries will begin operation in the second quarter of the year. The non-recourse debt for the batteries has been provided by IDB Invest, with resources from the Canadian Climate Fund for the Private Sector of the Americas – Phase II (C2F2). The repayment schedule of the financing is linked to the operational savings the batteries will generate for the two solar farms. In line with its business model, the company will retain 100% ownership of the assets.
The batteries’ millisecond response time will boost the quality of the primary and secondary reserve services, improving the stability and reliability of the electrical grid. The batteries will also reduce CO2 emissions by an estimated 5,000 metric tonnes per year, avoiding the use of fossil fuel power plants for ancillary services.
Paolo Cartagena, Managing Director of Neoen in El Salvador, said: “We would like to thank IJGlobal for this prestigious award, alongside all those involved in this transaction, particularly IDB Invest and C2F2, who are breaking new ground in Latin America with this type of financing. The award reflects the innovation shown by Neoen and the Salvadorian grid operator UT in transforming the initial idea into a world-leading example.”
Emmanuel Pujol, Regional Director of Neoen for the Americas, concluded: “The two new storage facilities mean Neoen now operates the largest portfolio of batteries in Central America. I would like to thank the team for their hard work on this project and IJGlobal for the award. With more than 640 MW of batteries in operation or under construction, Neoen understands the key role battery storage will play in the energy transition. We are delighted that both lenders and institutions like IJGlobal are also recognising the importance of batteries. We look forward to building on our experience to deliver innovative solutions to benefit grids, industry and consumers across Latin America.”
1 – It also includes the refinancing of an additional battery at the Capella farm (3 MW / 2 MWh), which has been in operation since 2020, taking the total value of the transaction to 14 MW / 10 MWh.