Share the page

Proparco and Grupo Enhol partner to advance Peru’s solar energy transition with landmark Illa project

Signature

Published on

DR

Proparco and Santander join forces to support Grupo Enhol’s 467 MWp Illa solar project in Peru, strengthening the country’s clean energy transition and mobilizing long-term financing for critical renewable energy infrastructure.

Proparco has signed a USD 40 million senior loan in favor of Grupo Enhol to support the financing of the Illa project, a large-scale solar photovoltaic plant and associated transmission infrastructure in southern Peru. Developed by Grupo Enhol, a Spanish renewable energy sponsor with more than 27 years of experience in the sector, the project will have a total installed capacity of 467 MWp and is expected to become the largest solar power plant in Peru when it enters into operation in 2027. The project is expected to contribute around 2.5% of the country’s national electricity supply and support the diversification of Peru’s energy mix.

The financing is part of a USD 289 million syndicated financing, including a USD 250 million mini-perm facility fully structured and underwritten by Banco Santander, alongside Proparco and several other development finance institutions: Instituto de Crédito Oficial E.P.E. (ICO), Corporación Financiera de Desarrollo S.A. (COFIDE), Compañía Española de Financiación del Desarrollo, COFIDES, S.A., S.M.E. (COFIDES), Fondo para Inversiones en el Exterior, F.C.P.J. (FIEX) and Development Finance Institute Canada Inc. (FinDev Canada).. The DFIs are providing financing with a seven-year maturity, supporting the project from construction through to operational maturity. 

The mini-perm structure is designed to secure financing during the project’s higher-risk construction and ramp-up phases, while preparing the asset for access to private capital markets once operational. This approach is fully aligned with Proparco’s mandate to mobilize private capital and reduce risks associated with essential infrastructure projects. The transaction also marks Proparco’s first infrastructure financing collaboration with Banco Santander, opening new opportunities for cooperation on infrastructure projects across the Andean region.

The Illa project is fully aligned with Peru’s energy transition objectives and its ambition to increase the share of non-hydropower renewable energy to 30% of the country’s energy mix by 2030. This objective is particularly relevant in a context where electricity demand is expected to reach 75 TWh, driven by industrial and mining activities as well as rural electrification. By adding significant new solar generation capacity and associated transmission infrastructure, the project will contribute to the diversification, resilience and decarbonization of Peru’s electricity system.

This solar plant is expected to avoid around 369,000 t CO₂eq annually and contribute to broader socio-economic benefits, including improved access to essential energy services for an estimated 263,000 people and the creation or preservation of approximately 2,425 indirect jobs in Peru.

Supporting transformative renewable energy infrastructure such as the Illa project is at the heart of Proparco’s commitment to climate action and sustainable development. This transaction demonstrates the value of combining the structuring and syndication capabilities of private financial institutions with the long-term financing, environmental and social expertise and risk-sharing capacity of development finance institutions. We are pleased to partner with Grupo Enhol and Santander on a project that will make a significant contribution to Peru’s clean energy transition while generating tangible benefits for local communities.

Stanislas De La Riviere

  • Regional Director for Andin region Proparco

Illa will be Peru's largest solar plant and one of the most significant renewable projects in the region, and it reflects Grupo Enhol's long-term commitment to the country. Proparco's participation completes the lender group and fully closes the project's financing, combining the strength of a leading commercial bank with the long-term support of development finance institutions. We are proud to have Proparco alongside us on this journey.

Roberto Aguado

  • CFO of Grupo Enhol