DEG invests in biggest solar farm in the Caribbean
Press Release from 2018-07-26 / DEG
DEG is investing in the expansion of renewable energy in the Dominican Republic by arranging a long-term loan of USD 62 million for the development of a solar farm.
116 MW plant in the Dominican Republic
DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, is investing in the expansion of renewable energy in the Dominican Republic by arranging a long-term loan of approximately USD 62 million for the operating company Montecristi Solar FV S.A.S. (Montecristi) to fund the development of a solar farm. DEG's own share amounted to around USD 20 million. The funding was provided together with the Dutch development bank FMO and the Belgian development bank BIO. Euskirchen-based F&S Solar is involved both as project developer and investor.
Green electricity for 100,000 households
The first phase of the 58 MW capacity Montecristi solar farm, located in the north-west of the Dominican Republic, has now been opened. Completion of the entire 116 MW plant is scheduled for summer 2019, by which time it will be providing environmentally friendly electric power to around 100,000 households. During the development of the solar farm, a biodiversity concept was also developed and implemented in cooperation with the "Jardin Botanico Nacional" and a team of experts in accordance with international standards.
Despite having a good geographical location for the production of solar power, to date the Dominican Republic has been largely dependent on imported fossil fuels. The Montecristi solar farm will make an important contribution towards the development of a sustainable energy supply whilst eliminating around 108,000 tonnes of CO2 emissions each year. Under a Power Purchase Agreement (PPA), the electricity generated by the plant will be fed into the state grid for 20 years.
German company receives support for transaction abroad
On the occasion of the opening of the solar farm, Gunnar Stork, Head of Corporates/Project Finance/Funds Africa/Latin America at DEG, noted: “We are pleased to be advising and supporting the expansion of F&S Solar, a medium-sized German company which is an experienced developer of solar systems. The plant is intended not only to give an economic boost to the region, but also to serve as a benchmark for renewable-energy projects.”
Georg Schmiedel, CEO of F&S Solar, emphasises: "With its international experience, DEG was key to success. That enabled us to develop this new market. To do so, it was important for us to bring on board proven German partners."
Financing and support for German companies is one of DEG's priorities, as are climate and environment protection. In 2017 alone, DEG has pledged around EUR 560 million for investments in climate and environmental protection.