Solar project in Honduras to get IFC funding

The International Finance Corportation (IFC), a member of the World Bank Group, is considering financing the 50 MW Aura Solar II project in Honduras.

The total project investment is estimated at US$120 million. IFC’s proposed investment for its own account consists of an A loan of up to US$25 million. IFC is also expected to mobilize additional funds from other financial institutions to complete the financing.

Aura II is being developed by Gauss Energía, an independent Mexican energy developer, and will be owned by Corporación Aura Solar and by the Flores Family. The project will be constructed and operated under an EPC contract. It is in design stage and construction is expected to be completed by the second half of 2015.

The project involves the development of a greenfield photovoltaic power plant on an area of 150 ha to be located in the Choluteca Municipality, which is approximately 152 km south of the capital city of Tegucigalpa, Honduras. The Project is expected to produce an average of approximately 125GWh per annum.

The project has successfully secured a 20-year power purchase agreement (PPA) with state-owned utility, Empresa Nacional de Energía Eléctrica (ENEE). The solar plant will be interconnected to Santa Lucia, an existing substation located in the outskirts of Choluteca, via dedicated 34.5 kV single pole transmission lines with a length of 11 km, along an existing road.

The project aims to provide critical demonstration effect of financial feasibility of one of the first large scale grid-connected solar PV projects in Honduras. It also aims to support the diversification of Honduras' energy matrix moving away from a fossil fuel based energy generation model.