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Guatemala: Proparco is cofinancing a wind farm
Project
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Signature date
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Location
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Guatemala
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Financing tool
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Financing amount (Euro)
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17005879
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Financing details
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USD 18.8m Senior loan
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Customer
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Transmisión de Electricidad S.A.
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Type of customer
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Company
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Country of headquarters
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Guatemala
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Project number
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PGT1009
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Environmental and social ranking
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B+
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Climate co-benefits
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Project with climate co-benefits
This information is given at the time of signature, without prejudice to any developments in the operation/project.
In partnership with DEG and FMO, Proparco is providing USD 18.8m of financing for a wind farm with a capacity of 31.5 MW. This project is contributing to the objective set by the Guatemalan authorities to increase the share of renewable energies to 80% of the total electricity generated by 2030. This will reduce the country’s dependence on high-carbon emission thermal energies. This project is expected to support some 500 jobs in Guatemala.
Client presentation
Grupo Terra, a Honduran family group operating in the fields of energy, real estate and infrastructure in Central and Latin America, is a client that Proparco knows very well. In recent years, it has received support for several renewable energy projects in Honduras. Grupo Terra has developed several energy projects across the region, with an installed capacity of over 1000MW of thermal, hydropower, wind and solar assets in Guatemala, Nicaragua, Honduras and Peru.
Project description
The project involves financing a wind farm with a capacity of 31.5 MW, comprising 15 turbines and a 15 km-long transmission line, located in Jutiapa Department in Guatemala. The project benefits from a 15-year power purchase agreement with the distribution company EEGSA, allocated through an international bid invitation conducted by the Guatemalan authorities in 2013. The power plant has been operational since April 2018.
Project impact
This project contributes to the objective set by the Guatemalan authorities to increase the share of renewable energies to 80% of the total power generated by 2030. This will reduce the country’s dependence on high-carbon emission thermal energies and avoid the emission of some 72,000 tons of CO2 a year. The project will support some 500 jobs in Guatemala.