Narrative
Full Description
Project narrative
The Government of Cuba awarded Hive Energy Ltd. -- a leading UK developer of solar projects -- the 61.9MW Photovoltaic (PV) Power Plant Construction Project through an invitation-only tender process that took place between October 2015 and May 2016. Cuba’s state-owned utility, Unión Eléctrica de Cuba, signed a 25-year power purchase agreement with Hive Energy Ltd. to buy the power generated from the solar power plant (park) for 25 years at a fixed rate of $90/MWh in September 2017. Then, in November 2018, SE Energy Investment Co., Ltd. -- a UK subsidiary of Shanghai Electric Group --- and Hive Energy Ltd. formed a joint venture (Mariel Solar S.A.) to build and operate the 61.9MW photovoltaic power plant in Cuba's Mariel Development Zone. The $73 million project was financed according to a 70:30 debt-to-equity ratio. SE Energy Investment Co., Ltd served as the source of debt financing (worth approximately $51.1 million). Hive Energy Ltd. and SE Energy Investment Co., Ltd jointly provided the equity financing. The project involved the construction of a 61.9MW solar power plant (using 325W solar panels with single axis tracking systems), which was to be built in the Mariel Development Zone by Mariel Solar S.A. It was expected to be the first renewable power plant in Cuba that was 100% foreign-owned and -operated. The project is situated on 118 hectares in Cuba's Artemisa Province and divided into three sites: the Trébol site: 12.69 MWp; the Habana Libre site: 10.57 MWp; and the Herradura & Varela site: 38.68 MWp. Shanghai Electric Group Co., Ltd. was the EPC contractor responsible for project implementation. Construction was originally expected to begin in November 2018 and reach completion in December 2019. However, construction did not commence until September 2019 (after a formal commencement ceremony attended by HRH Prince Charles in March 2019). The power plant was connected to the electricity grid on or around December 16, 2021.
Staff comments
1. The Chinese name for the project is 50兆瓦光伏组件自动生产线项目和家电工业园改造项目 or 马里埃尔光伏电站项目 or (马里埃尔) 特区62MW天际光伏发电项目. 2. The equity component for this project is captured via Record ID#69403. 3. Mariel Solar is the first privately owned, utility scale, renewable energy project in Cuba. 4. On October 25, 2017, China Eximbank and the Government of Cuba signed a $60 million preferential loan framework agreement for the 50MW Photovoltaic (PV) Module Production and Industrial Park Project. It is unclear whether/how this project relates to the 61.9MW Photovoltaic (PV) Power Plant Construction Project. 5. Hive Energy Ltd. was reportedly interesting in refinancing with a traditional project finance loan provided by multilateral institutions once it is completed. Dutch development bank Nederlandse Financierings-Maatschappij voor Ontwik kelingslanden (FMO) and German development bank DEG have shown interest in the project. FMO had initially approved a line of credit for the project’s development but decided to avoid fronting the construction risk as the project evolved.