Mecanismos de Energia Renovable (Mecer) Solar PV Plant

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In early 2014, the local sponsor Grupo Terra (SPV) was awarded the right to develop, construct and operate a 25MW greenfield solar photovoltaic power project in Santa Lucia, the Choluteca province, in Honduras. The investment was estimated at US$69.3 million. The special purpose company Sociedad Mecanismos de Energia Renovable S.A. de C.V. (MECER) was established to manage the project. Mecer benefits from a 20-year power purchase agreement (PPA) with Honduran national power company (ENEE). It is one of several solar projects being developed in Honduras within a framework in which the first 300MW reaching technical completion by mid-2015, are eligible to benefit from an additional solar incentive. First Solar is providing solar panels for the Mecer project. In December 2014, the Project achieved financial closure with a debt-to-equity ratio of 75:25 on the US$ 69.3 million project. The US$52 million debt package consisted of loans from FMO (US$12.5 million), DEG (US$11 million), Proparco (US$11 million), Opec Fund for International Development (US$10 million) and Interact Climate Change Facility (US$7.5 million). Grupo Terra provided US$17.3 million in equity. Commercial operations commenced in August 2015.