WASHINGTON - IDB Invest has provided up to $185 million in financing to Genneia S.A. to build four solar parks and add battery energy storage systems in Argentina. The initiative will provide cost-effective electricity for commercial and industrial customers, a key step toward a more competitive production in the country through the private sector.
The investment will help make the electrical grid more resilient to demand spikes, supporting a more stable and reliable power supply. The financing will enable the development of four solar plants: San Rafael (180 MW) in the province of Mendoza, San Juan Sur (120 MW) in the province of San Juan, and Lincoln and Junín (20 MW each) in the province of Buenos Aires.
The agreement also finances 40 MW of new battery storage capacity in the province of Buenos Aires, connected to the 132 kV Maschwitz substation and the Edenor distribution network. This component was awarded under the AlmaGBA tender issued by the Secretariat of Energy, aimed at expanding the storage capacity of the national electricity system.
"Through this operation, IDB Invest supports a pivotal expansionary phase in Argentina's energy sector through a mix of long-term financing, technological innovation, and cross-cutting, place-based insight. It is a decisive move to bolster Argentina’s energy system, which will power the next wave of productive investment in the country," said Viviana Alva Hart, IDB Group’s representative in Argentina.
Tranche A of the IDB Group's financial package totals $185 million, with the following components:
For the solar park project:
• An IDB Invest loan of up to $88.9 million
• A $73.9 million loan from the JICA Trust Fund for the Development of Latin America and the Caribbean (TADAC)
For the energy storage and battery project:
• A $2.2 million IDB Invest loan
• A $20 million loan from the Canadian Net Zero and Climate Resilience Accelerator, which includes financial incentives linked to the achievement of objectives for the battery energy storage project, as well as goals to promote greater participation of women in leadership roles at Genneia.
The IDB Invest-sponsored funding could be increased to $320 million with the addition of $135 million from tranche B lenders.
This project showcases the IDB Invest's "Originate-to-Share" business model, which leverages its structuring expertise to attract additional private capital and expand development financing in Latin America and the Caribbean.
IDB Invest will also help strengthen Genneia's corporate governance. Additionally, it will provide technical assistance on studies for electricity transmission projects in northern Argentina linked to new investments in critical minerals, as well as on best environmental and social practices for a sustainable energy sector.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: www.idbinvest.org/en.
About Genneia
Genneia is the leading provider of sustainable energy solutions in Argentina, accounting for 23% of the country’s total installed capacity, including 21% of wind power capacity and 26% of solar capacity. The recent commissioning of the San Rafael Solar Park in Mendoza, together with the inauguration of the Anchoris Solar Park—also in Mendoza—and the La Elbita Wind Farm in Buenos Aires Province, has increased Genneia’s total renewable energy capacity to more than 1,580 MW, consolidating its leadership in the sector and marking an unprecedented milestone in the country’s energy landscape.
About the JICA Trust Fund Achieving Development of Latin America and the Caribbean
The JICA Trust Fund Achieving Development of Latin America and the Caribbean (TADAC) is a fund managed by the IDB Group, established in collaboration with the Japan International Cooperation Agency (JICA) to promote sustainable development in Latin America and the Caribbean. With an initial contribution of US$1 billion, the fund seeks to catalyze private investment through co-financing of strategic projects. TADAC is JICA’s first fund with the IDB Group dedicated to the private sector and the largest in the region, strengthening BID Invest’s “originate-to-share” business model.
About Canadian Net Zero and Climate Resilience Accelerator
The Canadian Net Zero and Climate Resilience Accelerator, is a fund administered by the Inter-American Development Bank. The purpose of the Canadian Net Zero and Climate Resilience Accelerator is to drive climate resilience and reduce greenhouse gas emissions in Latin America and the Caribbean through new technologies, innovative business models and nature-based solutions, while promoting gender equality, diversity and inclusion.