Hanwha Energy, a South Korea-based renewable energy company, announced it has begun the construction for a 125MW solar power plant in Torreon, Coahuila, Northern Mexico.
The US$ 115 million facility, named Laguna solar project, will be developed, financed and operated by its wholly owned U.S.-based subsidiary 174 Power Global. Its capacity output will power over 25,000 households in the Coahuila state.
The solar facility is set to be completed by March next year and the subsidiary will sell electricity to Mexico’s state-run utility company Comision Federal de Electricidad (CFE) for 15 years under a power purchase agreement (PPP).
Hanwha Energy said US$ 74 million of the project costs will be financed through Korea Development Bank and Mexican development bank Bancomext.
The project is also expected to raise synergy between Hanwha Group companies as Hanwha Q Cells will provide a full set of 360,000 quality solar modules to the site.