Utility-scale PV project developer Fotowatio Renewable Ventures (FRV) has reached financial close for the 342MW Potosí Solar Farm in Mexico.

FRV closed the financing agreement with KFW (Kreditanstalt für Wiederaufbau), Bancomext and ING.

The project, which stands as FRV’s first to be operated in Mexico, was awarded in the second auction held by the National Center for Energy Control (CENACE) in September 2016 and was followed by the Power Purchase Agreement (PPA) with CFE Suministro Basico in March 2017.

Located about 60km northeast of the city of Zacatecas in the State of San Luis de Potosí, the Potosí Solar Farm will be connected to the national electricity grid, generating enough energy to power around 150,000 households. Once completed, it will also cut greenhouse gas emissions by approximately 600,000 tons of CO2 per year.

Construction on the plant, which will be carried out by TSK under an EPC contract, is scheduled to have an extension of approximately 800 hectares and will begin construction operations in early 2018. The entire project is expected to be operational by early 2019 — creating 300 construction jobs in the process.

Rafael Benjumea, chief executive officer of FRV, said: “Mexico has enormous renewables potential. That is why we are committed to bringing clean energy and job creation in the country. This particular project will contribute to socio-economic development and allow us to continue leading international trends in the production of clean, competitive and sustainable energy.”