Renewable energy company Ecoener has secured a $43.1m loan from Proparco, the French Development Finance Institution and a subsidiary of the Agence Française de Développement Group (AFD Group).
The funds will be dispensed to support Ecoener’s renewable energy operations in the Dominican Republic including the Payita 1 solar photovoltaic (PV) plant.
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The 60MW Payita 1 facility is located in the province of María Trinidad Sánchez in the northern Dominican Republic.
The project adheres to the International Finance Corporation’s (IFC) “stringent” sustainability performance standards.
These guidelines ensure the project’s sustainability by identifying environmental and social impacts, risks, and opportunities while also guaranteeing proper management and mitigation.
Proparco has also evaluated the quality of construction and technology used by Ecoener in the project.
Proparco Asia and Latin America head of power and digital Anne Gautier said: “Proparco is pleased to enter into a partnership with Ecoener, a leading European player in the field of renewable energy.
“The development of this solar photovoltaic power plant in the Dominican Republic meets the government’s ambitious goal of increasing the share of electricity production from renewable energy in the country while improving access to clean, reliable and affordable electricity for Dominicans.”
The solar plant is supported by $142m in secured revenue over the next 15 years.
This will be realised through a long-term power purchase agreement (PPA) with Edenorte, an energy sale and distribution company in the Dominican Republic.
The financing from Proparco will enable Ecoener to strengthen its financial base with a new long-term loan.
Ecoener chairman Luis de Valdivia said: “We would like to thank Proparco for their trust in us. It shows Ecoener’s capacity to develop fully sustainable projects that meet the highest international social and environmental standards.”
The Dominican Republic is set to become Ecoener’s primary market with Payita 1 and 2, and Cumayasa 4 PV solar plants starting operations this year, adding to the two plants that are already operational.
The total installed capacity of the facilities will reach nearly 280MW.
Payita 1 is expected to produce 118.4GWh, which is equivalent to the consumption required by 29,600 households.
The clean energy generated will prevent 64,173tpa in CO₂ emissions and reduce 10,182tpa of consumed fossil fuels.
