Central America Renewables

Arctas business model in Central America has been to bring challenging or first-of-their-kind projects to financing or construction with local partners and to monetize Arctas investment to regional or global investors.

Nicaragua Wind

Arctas developed the 1st, 2nd and 4th wind plants built in Nicaragua, representing 107MW of clean energy (providing approximately 11% of the country’s power needs). Arctas principals had previously developed the first major thermal IPP in Nicaragua — barge-mounted– as well as numerous other projects in the region.

The projects are located in one of the best resources in the North American continent. The projects achieved net capacity factors exceeding 60% in 2015 due to favorable wind conditions.

Each of the projects were done at competitive prices without subsidies or high feed-in tariffs, thereby lowering the overall costs for consumers without cost to the government.

Summary of Arctas Nicaragua Wind Projects

Amayo I project (40MW); Arctas lead developer and 47.5% owner; brought online March 2009; 19 Suzlon 2.1MW turbines.
Amayo II project (23MW); Arctas lead developer and 47.5% owner; brought online April 2010; 11 Suzlon 2.1MW turbines.
Eolo project (44MW); Arctas lead developer and 100% owner; brought online May 2013; 22 Gamesa 2MW turbines.

Amayo and Eolo will reduce an average of around 300,000 tonnes of carbon emissions each year

When Arctas developed Amayo I in 2008, Nicaragua relied upon imported fuel oil to produce nearly all of its electric power needs. (Together, the Arctas wind projects will reduce 700,000 bbl per year of imported fuel.) Since that time, Nicaragua has become a global leader in aggressively transforming itself away from high carbon imported fuels for power by developing a range of renewable resources: wind, geothermal, hydro and solar. Reports indicate that the country currently receives around half of its power needs from renewables and has set ambitious targets to achieve 90% renewables penetration in the future.

News reports on Nicaragua renewables can be found on following links: Nicaragua Renewables and Nicaragua Clean Targets

Project Financing

Arctas secured $72 million in project finance debt from the regional development bank BCIE for Amayo I. For Amayo II, Arctas raised vendor financing for the construction and $44 million of permanent financing from FMO, EKF, BIO and BCIE. Arctas secured $90 million in project finance debt from FMO, Proparco and DEG for the Eolo Wind Project.

Project Sales

Arctas sold its interest in Amayo I to an affiliate of Ashmore Group in May 2010, following one year of operations. And, at the same time, it sold its interest in Amayo II, following commissioning of the wind plant. In March 2012, Arctas sold its interest in the Eolo project to Globeleq MesoAmerica (a subsidiary of Actis), following notice to proceed under the construction contract and drawdown on project financing.

Guatemala Wind

Arctas was co-developer in the 53MW San Antonio Wind Project in Guatemala, the country’s first wind plant. Arctas sold its interest to its two local partners following a power contract award in a competitive tender in a Guatemala power auction. Subsequently, the project was brought online with Vestas wind turbines.

El Salvador Solar

Arctas was majority stakeholder in consortium that won public tenders for a small solar project in El Salvador. Arctas sold its interest to its local partners following award of contract for power sales.