Wind power in El Salvador: BAM finances new wind farm

Wind power in El Salvador: BAM finances new wind farm

2019-07-20T11:30:57+00:00July 20th, 2019|Wind Energy|

Ventus, SA is the wind farm to be built in the municipality of Metapán, department of Santa Ana, El Salvador, a wind energy project that requires an investment of $ 85.5 million, of which Banco Agromercantil de Guatemala (BAM) will finance 50%, to which approved a loan for $ 42.75 million.

It will have the capacity to generate 54 megawatts, will benefit more than 80,000 Salvadoran families, contributing at the same time with the diversification of the energy matrix and will help reduce the emission of greenhouse gases.

The project owned by the Tracia Network Corporation is developed by Guatemalan and Honduran investors who have experience in wind power in Guatemala, Nicaragua and Honduras. Its construction will take place over 17 months and it is estimated that it will start operating in August 2020.

“As a leading bank in Guatemala, we are delighted to see and support initiatives that benefit Central American citizens. Ventus arrives in El Salvador to open a gap on the way to the generation of renewable energy in the isthmus, “says Michael Saborío, managing director of Banca Empresas BAM.

The bank, which is part of the Bancolombia Group, has also financed the San Antonio El Sitio wind farm in Guatemala. With its participation in the Ventus project, it ratifies its commitment to support efforts to generate clean energy.

According to a statement from the financial group, 100% of the energy generated by Ventus will be for the Salvadorans’ consumption. Banco Agrícola de El Salvador, also a subsidiary of Grupo Bancolombia, will serve as a fiduciary agent.

“There is a growing demand for energy in El Salvador and therefore Ventus will have a very important role in the use of wind resources in the neighboring country. The first wind farm in El Salvador will contribute significantly in reducing the import of fossil fuels for the generation of electricity in this country, contributing to its economy and taking care of its natural resources, “added Saborío.

For the development of this project, the Salvadoran authorities signed a “Legal Stability” contract last February. This is regulated by the Law on Legal Stability for Investments, approved in 2015.

This is the first plant to generate clean energy from the force of the wind that will be built in the country.