The Providencia solar project by French developer Neoen is divided into two blocks, a 76 MW plant which was awarded in an auction and a block of 25 MW which will provide electricity to distributors under the framework of private negotiations.
Last week saw the official launch of a 101 MW solar project in El Salvador, by far the largest to date in El Salvador and one of the largest in Central America. A ceremony for placement of the first module in the Providencia project, which is located in the La Paz department, was attended by representatives of developer Neoen, and Salvadoran authorities, including El Salvador VP Óscar Ortiz.
The project consists of two blocks, a 76 MW PV plant which was awarded in the first auction of renewable energy projects held in El Salvador, which was held in 2014, and a 25 MW PV plant. This final block is the result of private negotiations with electricity distribution companies, according to press releases by El Salvador’s National Energy Commission (CNE).
Investments in the Providencia project totals around US$151 million. Among these, the Inter-American Development Bank (IDB) and the Canadian Climate Fund are together providing US$88 million, French development bank Proparco will supply $30 million, and Neoen is investing $33 million.
The largest PV plant built to date in Central America is a 104 MW project in Honduras, which was inaugurated last year.