Engie Secures $600M for Peru's Renewable Energy Push

• Engie SA secures $600M IFC loan to boost Peru's renewable energy, expand solar and wind projects, and enhance sustainability and diversity initiatives.

Engie SA has secured a USD 600 million loan from the World Bank’s International Finance Corporation to develop renewable energy projects in Peru. The loan will be disbursed in tranches, with the first USD 120 million structured as a green and sustainability-linked loan. This funding aims to increase renewable energy capacity, implement climate adaptation plans, and enhance gender diversity in management at Engie Energia Peru.

The financial package will support the 51.7-MW Intipampa solar expansion in Moquegua, refinance the 36.8-MW Duna and Huambos wind farms in Cajamarca, and fund part of the 26.5-MW Chilca battery energy storage system. Engie Energia Peru's development pipeline exceeds 1,600 MW, with renewables comprising 30% of its output.

How will Engie SA's $600M loan impact renewable energy projects in Peru?

• The $600M loan will accelerate the development of renewable energy infrastructure in Peru, contributing to the country's energy transition goals.
• It will enable the expansion of the Intipampa solar project, increasing solar energy capacity in the Moquegua region.
• The refinancing of the Duna and Huambos wind farms will ensure their continued operation and financial stability, supporting wind energy production in Cajamarca.
• Funding for the Chilca battery energy storage system will enhance grid reliability and energy storage capabilities, facilitating better integration of renewable sources.
• The loan will support Engie Energia Peru's broader development pipeline, which includes over 1,600 MW of projects, helping to diversify Peru's energy mix.
• By structuring part of the loan as a green and sustainability-linked loan, Engie SA is aligning its financial strategy with environmental and social governance (ESG) principles.
• The initiative will contribute to climate adaptation efforts, helping Peru mitigate the impacts of climate change through increased renewable energy use.
• The focus on enhancing gender diversity in management aligns with global sustainability goals, promoting inclusivity and equality within the energy sector.
• The investment will likely stimulate local economies by creating jobs and fostering skills development in renewable energy technologies.
• Engie SA's commitment to renewable energy in Peru could encourage further international investment in the region's clean energy sector.