CIP reaches financial close on co-located solar project with 750 MWh battery in Mexico

Copenhagen Infrastructure Partners (CIP) has made ist final investment decision on the 420 MW La Esperanza Solar project, combined with a 150 MW/750 MWh BESS in Mexico.

The co-located project in Campeche, on Mexico’s Yucatán Peninsula, is the first CIP investment in Mexico to reach financial close.

CIP said the project will strengthen system reliability, resilience and flexibility in a region where electricity demand has increased the need for both power generation and storage capacity.

Construction is underway, with commercial operations expected in 2028. The project’s five-hour BESS will be one of the largest in Mexico when commissioned.

Mexico’s Ministry of Energy has recognized La Esperanza Solar as a priority project in the country’s planning framework and the solar and BESS installation is being developed in close coordination with the federal government and other relevant authorities, according to CIP.

The La Esperanza Solar has been developed through CIP’s Growth Markets Fund II (GMF II). The project financing comprises approximately $510 million in debt facilities provided by a consortium of five international and regional commercial banks: BNP Paribas, JPMorgan Chase Bank, Natixis CIB, Santander and Scotiabank.

Equity is funded by the project owners: CI Growth Markets Fund II with an expected co-investment from leading Mexican retirement fund administrator, Profuturo.

Peter Halmø, head of Latin America and managing director at CIP, said reaching financial close was a major milestone for the GMF II fund.

“We have been active in Mexico for several years, and this will be our first project in the country to start construction – a step that reflects both the strength of the team and project and the close collaboration with contractors, authorities, and partners,” Halmø said. “Pairing solar with battery storage is central to bringing more renewable energy onto the Mexican grid, and we are proud to help build a more reliable, lower-carbon power system.”