CEPU to buy Cafayate solar
Local utility Central Puerto (CEPU) has signed a deal to buy the 80MW Cafayate solar farm in Salta from Canadian Solar. The deal involves the purchase of shares in Fieldfare Argentina SRL, which owns and operates the plant. Financials were not released. Close is expected on September 2, pending customary regulatory approvals.
The scheme was financed in late 2018 via a US$50m non-recourse project financing. Latin American development bank CAF arranged the deal, which featured a US$30m CAF A-loan with a 15-year tenor, a US$15m parallel loan from Argentine investment and foreign trade bank BICE with a 15-year tenor, and a US$5m loan from Banco de la Ciudad de Buenos Aires with a 10-year tenor.
The project, operating since 2019, has a 20-year power purchase agreement with wholesale power market administrator Cammesa won during a RenovAR auction that was priced at US$56.28/MWh. This 20-year PPA is guaranteed by the World Bank.
