Bosforo PV Project
Region and country of operations: El Salvador
Jurisdiction of registration: El Salvador
Business sector: Solar power
Date of agreement (month/year): 8/2017
Finnfund’s financing: USD 15,000,000
Share of Finnfund’s financing: 9%
Size of project/financing: USD 160,000,000
Environmental and social category: B+
Bosforo Ltda de CV is a project company that is constructing ten solar power plants in El Salvador, Central America. Power plants are expected to be fully operational in 2019. Together, they will have a capacity of 100 megawatts.
The company responsible for the project, Bosforo Ltda de CV, is owned by two companies with long expertise in the energy sector: AES Soluciones, Ltda de C.V., part of AES El Salvador and a subsidiary of The AES Corporation, an international energy company, and CMI Solaris Investments, S.L., owned by a conglomerate Corporación Multi-Inversiones.
Main development impact
Once ready, each of the ten power plants will generate sufficient electricity for nearly 30,000 rural households, which consume on average less than 65kWh/month. It is estimated that the project will decrease emissions by up to 175,000 tons of CO2 equivalent annually by substituting 250 GWh of less efficient thermal generation by fossil fuels.
Solar power plants will be located in poor rural areas where many residents are dependent on remittances coming from abroad, and illiteracy is common. Currently, the company has made an agreement in three municipalities in the eastern part of the country: Conchagua, El Carmen and Pasaquina. The construction projects and the community projects are carefully planned in close cooperation with residents. It is estimated that a labor force of up to 70 people will be employed throughout the initial two years of construction.