NEOEN SA (EPA:NEOEN) - Neoen completes financing of two batteries with a capacity of 11 MW / 8 MWh for its solar farms in El Salvador

Transparency directive : regulatory news

22/07/2021 19:04

MEDIA RELEASE

Paris and San Salvador, 22 July 2021

Neoen completes financing of two batteries with a capacity of 11 MW / 8 MWh for
its solar farms in El Salvador

* Neoen has completed financing for two additional batteries with a total
capacity of 11 MW / 8 MWh to service its Capella (140 MWp) and Providencia (101
MWp) solar farms in El Salvador

* Neoen will be 100% owner of the two batteries, which will be entirely
financed with debt from IDB Invest, with resources from the Canadian Climate
Fund

* The batteries will provide primary and secondary reserve services, improving
the stability and reliability of the El Salvador electrical grid

* The two new batteries will complement the existing battery operated by Neoen
in El Salvador, positioning the company as the largest operator of batteries in
Central America

Neoen (ISIN: FR0011675362, ticker: NEOEN), one of the world's most dynamic
independent producers of renewable energy, has completed financial close for
two new batteries with a total capacity of 11 MW / 8 MWh that will provide
primary and secondary reserve services for its Capella (140 MWp) and
Providencia (101 MWp) solar plants, in the departments of Usulután and La Paz,
respectively. This additional capacity will take the total power of Neoen's
batteries in El Salvador to 14 MW and total storage capacity to 10 MWh,
positioning Neoen as the largest operator of batteries in Central America.

The non-recourse debt for the batteries will be provided by IDB Invest, with
the resources from the Canadian Climate Fund for the Private Sector of the
Americas - Phase II (C2F2). The repayment schedule of the financing is linked
to the operational savings the batteries will generate for the two solar farms.
In line with its business model, the company will retain 100% ownership of the
assets.

The consortium comprising TSK Electrónica and Gensun was chosen for the
engineering, procurement and construction (EPC) of the batteries. Construction
has already commenced, with commissioning scheduled for the second quarter of
2022. The batteries' millisecond response time will boost the quality of the
primary and secondary reserve services, improving the stability and reliability
of the electrical grid. The batteries will also reduce CO2 emissions by an
estimated 5,000 metric tonnes per year, avoiding the use of fossil fuel power
plants for ancillary services.

Neoen has been present in El Salvador since 2014 and has invested around US$300
million in solar farms and storage facilities. This latest development
increases its total capacity to 255 MW. Neoen's plants are currently the
largest in Central America. They supply 7% of demand from the wholesale market
and provide the most competitive energy in El Salvador.

Paolo Cartagena, Managing Director of Neoen in El Salvador, said: "Our local
roots and history in El Salvador have allowed us to provide increasingly
relevant solutions. We firmly believe the batteries are the perfect addition
needed to catalyse the growth of renewable energy in El Salvador. We are
grateful for the support of C2F2 and the IDB Group in achieving this shared
goal."

Gian Franco Carassale, Chief, Infrastructure and Energy Division, of IDB
Invest, commented: "The financing of the batteries for the Capella and
Providencia solar farms represents a major milestone for the Salvadoran
electricity market, providing an innovative solution to meet reliability
requirements. These storage systems will also improve the operational
efficiency of both solar energy plants, positioning Neoen - one of our
strategic clients in the region - at the cutting-edge of the application of
technologies that increase the penetration of renewable energy."

Xavier Barbaro, CEO and Chairman of Neoen, concluded: "I would like to
congratulate the Neoen team in El Salvador for this new project, which
showcases our expertise in integrating storage systems into our solar farms. We
have been present in El Salvador for over seven years now and we are proud to
keep on contributing to its energy transition. Our local presence and global
expertise provide a solid platform for our ambitions to expand further in
Central America."

About Neoen

Neoen is one of the world's leading and fastest growing independent producers
of exclusively renewable energy. Neoen has over 4.1 GW of solar, wind and
storage capacity in operation or under construction in Australia, France,
Finland, Mexico, El Salvador, Argentina, Ireland, Jamaica, Mozambique,
Portugal, and Zambia. The company is also present in Croatia, Ecuador, Sweden,
and the USA. Neoen's flagship assets include France's most powerful solar farm
in Cestas (300 MWp), and the world's largest lithium-ion power reserve in
Hornsdale, Australia (150 MW / 193.5 MWh storage capacity). Neoen is targeting
more than 10 GW capacity in operation or under construction by the end of 2025.
Neoen (ISIN Code: FR0011675362, ticker: NEOEN) is listed in Compartment A of
the regulated market of Euronext Paris.

For more information: www.neoen.com

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a
multilateral development bank committed to promoting the economic development
of its member countries in Latin America and the Caribbean through the private
sector. IDB Invest finances sustainable companies and projects to achieve
financial results and maximize economic, social, and environmental development
in the region. With a portfolio of $13.1 billion in asset management and 385
clients in 25 countries, IDB Invest provides innovative financial solutions and
advisory services that meet the needs of its clients in a variety of
industries.

For more information: www.idbinvest.org

About the Canadian Climate Fund for the Private Sector of the Americas - Phase
II

The purpose of the funds is to catalyze greater private investment in climate
change mitigation and adaptation projects in Latin America and the Caribbean by
providing concessional financings to projects that do not benefit from a
sovereign guarantee, paying special attention, where possible, to the poorest
and most vulnerable countries. The main areas of focus are renewable energy
generation and storage, energy efficiency, sustainable transportation,
greenhouse gas emission reduction and abatement projects, including forestry,
agriculture and land-use changes, as well as other projects supporting the
adaptation to climate change vulnerabilities. The funds have a cross-cutting
focus on the empowerment of women and girls.

Contact

Neoen

communication@neoen.com

Press

OPRG Financial

Isabelle Laurent
+33 1 53 32 61 51
Isabelle.laurent@oprgfinancial.fr

Fabrice Baron
+33 1 53 32 61 27
Fabrice.baron@oprgfinancial.fr

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NEOEN SA (EPA:NEOEN) - Neoen completes financing of two batteries with a capacity of 11 MW / 8 MWh for its solar farms in El Salvador

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