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EU firms to build Central America wind project

44 MW project will use Spanish wind turbines and be financed by the Netherlands

The wind farm will boost wind power in Central America
The wind farm will boost wind power in Central America

A series of EU firms are working together to develop a wind farm in Central America. Firms in Spain, Netherlands and the UK are all helping on the 44 MW Eolo wind project in Nicaragua.

UK and US firm Globeleq, a company which provides energy solutions for the emerging markets of Africa and the Americas, has announced the acquisition of the project.
It will consist of 22 2 MW Gamesa G90 wind turbine generators, with electricity being sold through two 20-year PPAs to the privately owned Distribuidora Electricidad de Sur S.A. (DISSUR) and Distribuidora Electricidad de Norte S.A. (DISNORTE), both subsidiaries of Gas Natural of Spain.  Eolo will also construct a new substation and interconnection lines to enable connection to the national grid.

The project debt financing is being provided by FMO, the Netherlands Development Finance Company, which also acted as the lead arranger; Proparco, the private sector investment arm of the French development body Agence Francaise de Developpement.

Mikael Karlsson, Globeleq's CEO, said: “The Eolo project enables us to harness a natural and clean resource which will have significant and long term economic and environmental benefits for Nicaragua.

“The addition of another quality renewable wind project enhances our position as the leading wind power producer in Central America," he added, making reference to its operating wind farms in Costa Rica and Honduras. 

Jay Gallegos, general manager and Legal Representative for GME Wind, said “Our renewable energy experience in the region is unparalleled and this will ensure a successful and efficient completion of the Eolo project.”

Civil construction works, including land clearing and road work, have already begun. Testing and operation of the turbines is expected to be complete by the start of 2013.