Canadian developer Northland Power will seek project financing for its first Mexican power plant, the 130MW La Lucha solar project in Mexico, according to a recent press release.
Northland has reached a final investment decision on the plant in the State of Durango and states that, while it will fund the initial construction of the plant through a combination of cash and its corporate credit facility, it will seek non-recourse project financing for the plant once it secures offtake agreements for the electricity.
A spokesperson for the company said that Northland is working with a range of commercial and industrial customers as well as qualified suppliers in Mexico with respect to bilateral offtake agreements, but that there was no update to these processes yet.
The company expects to complete construction of La Lucha in 2H20.
Northland worked with Mexican law firm Creel, García-Cuéllar, Aiza and Enríquez, Spanish engineering company TYPSA, and technical advisors Jacobs Engineering on the La Lucha project.
The company said in its 2018 annual report that it had a development pipeline in the works in Mexico and was exploring alternative investment opportunities beyond power generation in Latin America, such as energy infrastructure and transmission.
Northland responded to an RFQ in Panama in August 2018 for the 317km Chiriqui Grande-Panama II transmission lines, but their bid did not make the shortlist.
The process eventually fell through when Panamanian electricity company ETESA discarded the two bids from Interconexión Eléctrica (ISA), and China Electric Power Equipment and Technology Co on the grounds that their personnel involved in the bids were unsatisfactory.