Yinson Renewables has successfully secured $59 million in senior secured green financing for its Matarani solar project in Peru. This financing was arranged by IDB Invest and Natixis Corporate & Investment Banking (Natixis CIB) and is structured in accordance with the Green Loan Principles 2023, designed by leading financial institutions in the global syndicated loan markets.
Project Overview
The Matarani solar project, located near Arequipa, Peru, has a peak capacity of 97 megawatts and is backed by a long-term power purchase agreement (PPA) with Orygen, a prominent renewable energy supplier in the region. This project represents a landmark achievement in Peru’s energy sector as the first non-subsidized operational solar plant financed through a green project finance facility.
Financing Details
Amaury Chastan, Director of Infrastructure and Energy Finance at Natixis CIB, remarked, “This transaction reinforces our regional and sectorial leadership position. Structured as a green loan, it aligns perfectly with Yinson and the Bank’s efforts to support the global energy transition.”
The Matarani solar plant began exporting power in July 2024 and achieved full operational status by September 2024. It is expected to deliver 260 gigawatt-hours (GWh) of renewable energy annually, enough to power approximately 62,000 households in Peru.
Commitment to Renewable Energy
Vegard Urnes, CFO of Yinson Renewables, expressed his enthusiasm: “This milestone underscores our commitment to advancing renewable energy solutions and highlights the importance of strategic partnerships with esteemed institutions like IDB Invest and Natixis CIB.”
He added, “This collaboration is a testament to our shared vision of fostering sustainable development and addressing climate change. We look forward to continuing our work in Peru and beyond, leveraging these strong partnerships to drive future projects that contribute to a greener and more resilient energy landscape.”
Project Acquisition and Support
Yinson Renewables acquired the Matarani project from Grenergy Renewables in January 2024. Grenergy provided a full turnkey engineering, procurement, and construction contract for the project and will also manage operation and maintenance services for the first two years.
The Matarani solar project supports Peru’s energy transition and its goal to reduce reliance on thermal and hydroelectric power. IDB Invest CEO James Scriven stated, “This financing is key to Peru’s energy transition to renewable sources. The Matarani Solar project enhances environmental sustainability and demonstrates the vast potential for non-conventional renewable energy in Peru.”
Conclusion
The successful financing of the Matarani solar project marks a significant step forward for renewable energy in Peru, showcasing the potential for growth in the region’s non-conventional energy sources. With strong institutional support from IDB Invest and Natixis CIB, Yinson Renewables is well-positioned to lead the charge in sustainable energy development in Latin America.
Sources
- Yinson Renewables Press Release
- IDB Invest – Project Announcements
- Natixis Corporate & Investment Banking News
