Grenergy Renovables closes with KfW IPEX-Bank a Project Finance for a wind farm in Argentina
The Kosten wind farm is part of the RenovAr program and is located in Chubut, a province with exceptional weather conditions for the generation of this type of energy
Grenergy, the Spanish company that produces energy from renewable sources and specializes in the development, construction and operation of photovoltaic and wind projects, promotes its consolidation in the Latin American market following the recent sealed financing agreement with the German bank KfW IPEX-Bank for the construction and commissioning of a wind farm in Argentina.
This Project Finance includes the financing of senior non-recourse debt -which is linked only to the asset and limits the risk to the debtor – through a 15-year export credit, guaranteed by the credit insurance company Euler Hermes, which provides 95% coverage. In addition, the World Bank will support the Fund for the Development of Renewable Energies (FODER) in a payment guarantee to back-stop ongoing payment obligations by the offtaker.
The wind farm, meanwhile, will sell its production for a period of 20 years at a price in its first year, of USD 69.50 per MWh. Precisely, this project for which Grenergy bet in July of last year, is part of the RenovAr program, launched by the Argentine Administration to meet the goal of covering 20% of the country’s energy demand using renewable energy for the year 2025, a percentage that currently only stands at 2%.
The project, which is located in Chubut, a province of Patagonian Argentina that has exceptional weather conditions for the generation of this type of energy, as it enjoys more than 5,000 net hours of wind per year, will be built by the German manufacturer , Senvion, and its start-up is expected by the end of the second quarter of 2019.
Kosten thus strengthens Grenergy’s position in Latin America and is part of the portfolio of solar and wind projects of more than 1,500 MW, ‘Ready to Build’ or in various stages of development, diversified in countries such as Chile, Peru, Mexico, Argentina and Colombia, without forgetting Spain, which is once again firmly positioned in the renewable energy sector.
Just a few weeks ago, the company presented its 2017 accounts to the market with a turnover of 48 million euros -168% more than in the previous year-, a net profit of 3.5 million and a record EBITDA of 7 million thanks to this strategy of geographic and technological diversification towards these regions that lead the global renewable revolution.
According to the CEO and CEO of Grenergy, David Ruiz de Andrés, “our commitment to wind development in Argentina is decided by the enormous potential of this region in a very favorable context, after the Latin American country became in 2017 the second country in the world in which the investments in renewable energies grew the most, with an increase close to 800%, only behind the United Arab Emirates, according to the data of Bloomberg”.