Mexico's CFE gets EUR-150m loan from France for floating solar project

Mexican state-owned utility Comision Federal de Electricidad (CFE) has secured a EUR-150-million (USD 161m) loan from French development agency AFD to finance Mexico’s first floating solar project, the company said.

The project will increase renewable power generation by more than 120 MW, diversify CFE’s generation fleet and offset lower hydro power production during drought periods, the utility said in a press release on Tuesday.

The project may use two sites as both northern parts of the states of Sinaloa and Coahuila are being considered as locations for the arrays. The projects are currently in the phase of feasibility-level engineering development.

AFD’s loan has a term of 15 years and includes a two-year grace period. It is also associated with a grant of EUR 800,000 for technical cooperation to improve the planning, evaluation, and incorporation of renewable power plants into the Mexican grid. This work will be carried out by French power grid operator RTE and CFE’s transmission subsidiary, the utility added.

(EUR 1.0 = USD 1.074)

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