FinDev Canada commits $56 million to Peru’s largest solar PV project, supporting energy transition and economic growth

The Illa project, to become Peru’s largest solar photovoltaic plant, will add over 890,000 MWh annually to the national grid, displacing more than 305,000 tons of CO2 emissions per year. This renewable increase will help diversify a generation mix currently dominated by hydroelectric and natural gas sources, where wind and solar represent just 6% and 2%, respectively. Electricity demand in Peru is expected to grow at over 2% annually until 2050, underscoring the need for significant new capacity investment. The project supports Peru’s goal of achieving net-zero greenhouse gas emissions by mid-century by accelerating the clean energy transition and enhancing the resilience and sustainability of the power infrastructure.

The $56 million loan is part of a broader $289 million financing package led by Santander Corporate & Investment Banking. Energía Renovable La Joya S.A., fully owned by Spanish Grupo Enhol, leverages extensive expertise spanning renewable energy, agriculture, and real estate sectors. During construction, approximately 500 jobs will be created, with 10 permanent positions planned for ongoing operations and maintenance, indicating the project’s contribution to local economic development.

Key stakeholders praised the collaboration as reinforcing confidence in Peru’s renewable energy market and sustainable financing frameworks in Latin America. Lori Kerr, CEO of FinDev Canada, noted this deal expands the institution’s sustainable infrastructure portfolio in Peru, Canada’s second-largest bilateral trading partner in South and Central America. Grupo Enhol co-CEOs highlighted the financing as a vote of confidence in their long-term infrastructure strategy with measurable environmental and social impact. Santander’s leadership in the debt mobilization was recognized for its efficiency and shared commitment to timely project delivery.