Verano Capital, an American project developer headquartered in Chile, announced that it won 18 percent of the solar capacity in auction at the Argentinian energy tender with its 100 MW VeCaSo-1 solar project.
Located near Mendoza, Verano’s PV project was selected on a winning bid at $42.50/MWh.
The VeCaSo-1 100 MW project is set to be completed in 2019 and will run on a 20-year “take-or-pay” power purchase agreement with CAMMESA, Argentina’s national utility company.
Within this PPA framework, the generator takes on the production risk, with its plant expected to deliver power on a must-run basis. CAMMESA, on the other hand, must integrate all of the plant’s output, or remit compensatory energy payments if it fails to do so.
Argentina is one of the largest power markets in South America, but it currently suffers from an important power deficit. It is planning on reaching 20% of renewable energy generation by 2025, an ambitious target that requires the addition of about 10 GW of additional capacity.
In 2015, the government introduced the RenovAr auction program with the objective to scale up Argentina’s renewable energy uptake through yearly tenders.
Verano Capital offers turnkey development, EPC, O&M, and asset management services to investment funds.