AES Dominicana and Scotiabank signed a US$36 million, five-year financing agreement for the construction of the Santanasol solar project, structured in accordance with the Green Lending Principles1.
The bank is supporting the power generator in its efforts to accelerate the country’s clean energy future, in line with its commitment to help its clients move toward a low-carbon future by providing them with innovative green solutions.
The photovoltaic plant will entail an estimated investment of US$45 million and is part of AES’s sustainability strategy to reduce its environmental footprint. It will have a generating capacity of 50 megawatts and will reduce CO2 (carbon dioxide) emissions by an estimated 90,000 metric tons per year and will have the capacity to serve more than 30,000 households. It will be developed in the province of Peravia, in the south of the country.
This financing contributes to comply with the National Development Strategy 2030 and the commitment as a signatory nation to the Paris Agreement and the Sustainable Development Goals. The project targets Goal Seven of Affordable and Clean Energy and Goal 11 of Sustainable Cities and Communities for their environmental attributes.
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The contract was signed by Edwin De los Santos, president of AES Dominicana, and Gonzalo Parral, president of Scotiabank Dominican Republic.
“We are pleased to finance clean energy initiatives such as Santanasol, which support the transition to a low-carbon economy, while contributing to the economic growth and sustainable development of the Dominican Republic,” said Parral.
He added that the agreement is also in line with Scotiabank’s Climate Commitments, through which we are dedicated to supporting actions that address climate change through our banking operations.
“At AES, we are excited about this green finance initiative with Scotiabank, which accelerates our commitment to contribute to a sustainable future for the country. The project is of paramount importance because it consolidates the Dominican Republic as the fastest growing country in the region in terms of non-conventional renewable energy sources and, therefore, the one with the greatest capacity to attract investment that seeks to chain all its productivity in a more sustainable way,” said De los Santos.
Jeff Mackay, CFO for Mexico, Central America and the Caribbean (MCAC) of AES Corporation, said that “this loan allows us to continue growing our renewable energy portfolio in the region.
For AES, the Dominican Republic represents a highly attractive market where we expect to continue promoting new technologies and supporting the development of clean and efficient generation sources”.