AES Dominicana has raised US$368 million in a loan facility that will be used to finance renewable energy projects in the Dominican Republic.
The company, an arm of energy giant AES, will build three new assignments, Mirasol, Peravia I and Peravia II, which will have a combined capacity of 240 MWac, which AES plans to bring online by the end of next year. Part of the financing will be used to refinance debt accumulated through a portfolio of one wind and two solar allocations in the country, with a combined capacity of 150 MWac.
Multinational bank Banco Latinoamericano de Comercio Exterior (Bladex) served as the joint lead arranger and bookrunner for the loan facility, and worked with the Inter-American Development Bank, JP Morgan and Scotiabank to raise the funds.
“Bladex is very pleased with AES’ renewable strength efforts in the Dominican Republic,” said Ivan Nunez, Head of Infrastructure and Project Finance at Bladex. “This transaction underscores Bladex’s allocation financing execution capabilities, its strong relationship with a leading global player in power generation and distribution, and overall our appetite for infrastructure assets.
AES Dominicana already operates Bayasol’s 50 MW solar allocation in the Dominican Republic, and the company plans to expand its renewable energy portfolio in the country. In 2020, renewables accounted for just 0. 39% of the company’s operating capacity, down to 69. 44% for natural gas. .
This reflects the Dominican Republic’s broader energy sector, which remains heavily reliant on fossil fuels. In 2020, oil had the greatest impact on the country’s energy generation, accounting for 5,881 GWh of generation, ahead of natural gas, which accounted for 5,311 GWh of production. Solar energy accounted for only 434 GWh of electrical power generation in 2020, but with coal and oil production declining between 2019 and 2020, there is reason to be confident that the Dominican Republic could replace its energy. combine in the future.
AES Dominicana has already contracted Spanish expander TSK to expand Peravia’s Sun Force plants and is the latest investment in the country’s solar sector, following EGE Haina’s plans to build a new MW Sun Force plant in the municipality of San José de las Matas, in the province of Santiago.
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