El Salvador will build 100 MW solar PV with $15m financing from Finland

El Salvador’s renewable energy share is steadily growing, and an injection of $15m for a solar project will see that share increase further. Marking FinnFund’s first entry into El Salvador, the Finnish development financier will provide $15 million in loan funding to build 100 MW of solar PV across rural areas. Ten solar power plants will be developed by Bósforo Ltda de CV, owned by two established energy firms: AES Soluciones (subsidiary of The AES Corporation) and CMI Solaris Investments. Abraham Bichara, CEO of AES El Salvador, added that support from multilateral development financiers such as Finnfund along with other senior lenders, OPIC, CABEI and FMO, has been a key factor in the successful development of Bósforo. Finnfund CEO, Jaakko Kangasniemi, said that developing energy in rural communities is important to Finnfund’s strategy. “For us it is particularly important that the projects are taking place in poor areas which, in terms of development, have been left behind in many ways”, he said. “We have paid special attention to cooperation with local communities.” Each power plant will generate electricity for approximately 30,000 homes.