The VESA project has been developed by Grupo Terra, which has extensive experience in the energy sector in South America. It has an operational installed capacity of over 500 MW with thermal power plants (Panama, Peru), hydropower plants (Honduras, Guatemala, Salvador), wind farms (Honduras, Nicaragua) and solar power plants (Honduras, including MECER and GENERSA, which PROPARCO is also financing alongside FMO/DEG).
The project involves the extension of the VESA wind farm, for which PROPARCO partly financed phase 1 in 2013. The extension of the project from 50 to 63.2 MW should be operational in 2019. PROPARCO is acting here as a follower to FMO in the context of the Friendship Facility, alongside DEG and OFID.
The commissioning of the extension will generate an additional 43.5 GWh a year in order to meet increasing national electricity demand. This supply of reliable and clean electricity will contribute to reducing the frequent power cuts. It will provide some 267,000 people with access to a low-carbon source of electricity and avoid 11,200 tCO2 of emissions every year.
The project is in line with the strategy of the Government of Honduras to diversify its energy mix and reduce its dependence on fossil fuels.
It will contribute to SDGs 7 (Affordable and clean energy), 9 (Industry, innovation and infrastructure), 10 (Reduced inequalities) and 13 (Climate action).