Neoen closes financing for 11 MW/8 MWh of storage projects in El Salvador

French renewable energy company Neoen SA (EPA:NEOEN) said that it has secured the financing for two battery storage projects totalling 11 MW/8 MWh in El Salvador.

The non-recourse debt for an undisclosed sum will be provided by IDB Invest, the private sector arm of the Inter-American Development Bank, with the resources from the Canadian Climate Fund for the Private Sector of the Americas – Phase II.

The repayment schedule of the financing is linked to the operational savings that the batteries will generate for two solar farms which they will service. The storage units will provide primary and secondary reserve services for Neoen’s 140-MWp Capella and the 101-MWp Providencia plants located in El Salvador’s departments of Usulutan and La Paz, respectively.

Spain’s TSK Electronica y Electricidad SA and France’s Gensun SAS have been selected to provide engineering, procurement and construction (EPC) services for the battery projects. Neoen said that the construction work has already started, and expects the storage systems to be commissioned in the second quarter of 2022.

The new batteries will raise Neoen’s storage capacity in El Salvador to some 14 MW/10 MWh. The company has one lithium-ion battery installed and operating within the Capella solar complex.

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