IDB Invest and Natixis Facilitate Energy Transition in Peru by Reducing Emissions with Yinson Renewables’ Matarani Solar Project

IDB Invest release

LIMA, Peru – IDB Invest and Natixis have provided $59 million in financing for the Matarani Solar project. This project aims to diversify Peru's energy matrix with renewable sources and contribute to the reduction of the country's CO2 emissions.

The financing consists of a loan to GR Cortarrama S.A.C., a subsidiary of Yinson Renewables, for the construction and operation of the 97 MWp solar PV plant located in Arequipa, Peru. The project will be backed by a 15-year power purchase agreement (PPA).

The plant is expected to produce approximately 260,000 MWh annually, which will significantly reduce CO₂ emissions, and satisfy the electricity needs of approximately 62,000 Peruvian households.

The plant will contribute to reducing the country's dependence on thermal and hydroelectric power, as well as allow significant savings in operating costs and optimize the use of available resources in the region.

Following a visit to the plant, James Scriven, CEO of IDB Invest commented: "We are pleased to support Yinson Renewables´ first project in the region. This financing is key to Peru's energy transition to renewable sources. The Matarani Solar project enhances environmental sustainability and demonstrates the vast potential for non-conventional renewable energy in Peru. At IDB Invest, we remain committed to promoting projects that offer innovative financing solutions for the economic and social development of Latin America and the Caribbean."

Vegard Urnes, Chief Financial Officer of Yinson Renewables said: “We are thrilled to have successfully executed the mini perm financing for the Matarani Solar project, marking a significant milestone for Yinson Renewables in Latin America. This achievement not only underscores our commitment to advancing renewable energy solutions but also highlights the importance of strategic partnerships with esteemed institutions like IDB Invest and Natixis. This collaboration is a testament to our shared vision of fostering sustainable development and addressing climate change. We look forward to continuing our work in Peru and beyond, leveraging these strong partnerships to drive future projects that contribute to a greener and more resilient energy landscape.”

In addition, IDB Invest will be providing advisory services to the Matarani Solar project, focusing on climate risk assessment and climate change adaptation. This includes a climate vulnerability study to improve the resilience of the project, identifying additional adaptation and risk management strategies. This will help ensure that the project is more resilient to climate impacts and aligns with environmental and social best practices.

With IDB Invest's support, the Matarani Solar project will generate clean energy and set a precedent for financing renewable energy projects in Peru by demonstrating the viability of solar plants without subsidies in one of the regions with the highest solar irradiation on the planet. This project will help meet the country's emission reduction targets and with the Peruvian government's sustainability goals.

The project is also expected to contribute to several of the United Nations Sustainable Development Goals (SDGs), specifically: Affordable and Clean Energy, (SDG 7), Decent Work and Economic Growth, (SDG 8), and Climate Action, (SDG 13).