UK IPP finds equity partner for Cuban solar project

07 November 2018 - 12:00 am UTC

Shanghai Electric Group subsidiary SE Energy Investment has joined UK-based independent power producer Hive Energy as an equity partner for a 58MWp Cuban solar project, according to Hive Energy’s announcement.

The developer did not disclose the ownership split of the project SPV.

Construction on the solar project is expected to begin late this month and operations are slated for the fall of 2019.

Meanwhile, the SPV is understood to be lining up post-construction debt from Dutch development bank FMO and other associated financial institutions for the project.

The long-term debt would cover up to 80% of the roughly USD 60m capital requirement, as reported.

The debt package would be supported by a 25-year power purchase agreement (PPA) signed with Cuba’s utility company Unión Eléctrica de Cuba (UNE) in 2016. The PPA has a first call guarantee from a Cuban bank, which means that if the offtaker fails to make its payment, the bank would step in and pay at least part of the obligation. 

The project is expected to generate up to 93GWh of electricity per year and will be located near the Mariel Port in the Special Development Mariel Zone, roughly 50km west of Havana City.

Cuban solar project

 

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