Enel secures project financing from Simest for two renewable projects

Enel Green Power, an Italian renewable energy developer, has partnered with public-private finance institution Simest to secure financing for the development of two renewable energy projects in Mexico and Costa Rica.

Simest will offer €10m for both projects with Enel set to employ the funds for the 50MW Chucas hydroelectric plant in Costa Rica, currently under construction, and the now-operational 74MW Bii Nee Stipa II wind farm in Mexico.

Earlier, the companies had partnered for the development of the Palo Viejo hydroelectric plant in Guatemala, which was operationalized in 2012.

Enel CEO Francesco Starace remarked that with Simest, the company is pursuing projects with potential to generate significant economic and environmental benefits.

"The projects that we are undertaking are further evidence of our desire to expand in the Latin American renewables sector, where we already boast a strong presence, as well as our strategy to make use of debt financing for projects in development, rather than draw upon the cash flows generated by EGP, only when this arrangement enhances the projects or when the financing is offered at particularly advantageous conditions," Starace said.

Simest CEO Massimo D’Aiuto noted that over the past three years, the renewable energy sector witnessed major growth.

"Right now we have approved participation in 16 projects by renewable companies in 11 different countries, particularly in Central America, Italy and the USA, for a total investment of 1,134 million euros," added D’Aiuto.