LCV Ecoener Solares Dominicana, S.R.L.
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
The FMO financing consists of up to USD 27.5 mln long-term senior debt to LCV Ecoener Solares Dominicana S.R.L., a Dominican Special Purpose Vehicle (SPV) owned 100% by Grupo Ecoener S.A. Ecoener Group is a growing Spanish renewable energy developer and investor, listed on the Spanish stock exchange since 2021, and majority-owned (71%) by its founder and president, Luis de Valdivia, a Spanish entrepreneur with over 30 years of experience in renewable energy. As of December 2024, the Company operated a 427 MW renewable energy portfolio and is currently building an additional 360 MW in capacity. It operates in several markets including Spain, Colombia, Honduras, and Guatemala. In Dominican Republic, the Company has several projects, including Cumayasa I&II (96.5 MWp solar in operation), Cumayasa IV (62 MWp solar in construction), Payita I (60 MWp solar), and several other projects in development.
What is our funding objective?
The funding will be used to finance the Payita project, a two-phase 120 MW solar photovoltaic project (+15MW BESS) under the same SPV, located in two adjacent plots of land in María Trinidad Sánches, in the northeast of the Dominican Republic. Phase I of the project consists of a 60 MWp solar photovoltaic installation. It recently completed construction and received financing from Proparco, a subsidiary of the Agence Française de Développement (AFD). Phase II consists of another 60 MWp photovoltaic installation, plus 15 MW battery storage. The project will also include a 40 m connection to the existing 138kV line between Rio San Juan and Nagua. The total financing of the Payita project is estimated at USD 156 mln. FMO is expecting to finance up to USD 11.25 mln towards Phase I and USD 10 mln towards Phase II. A potential USD 6.25 mln top up will also be explored for Phase II during due diligence.
Why do we want to fund this investment?
This transaction aligns with FMO’s Energy strategy. The funding will be used to finance a 100% green power generation project and battery storage, with an expected output of 229 GWh per year. It will support the Dominican Republic Government's ambition to reach at least 25% of renewable power generation by 2030. FMO has a longstanding track record and experience investing in the country, being one of the first lenders to renewable projects. Payita will notably be the second project financed by FMO in the Dominican Republic that includes a battery storage component, a technology highly promoted by the Dominican Republic Government to help promote the stability of the national grid.
What is the Environmental and Social categorization rationale?
The E&S category for this project is classified as B+, as defined by FMO's Sustainability Policy. IFC Performance Standards (PS) triggered are PS1, PS2, PS3, and PS4 for Payita I. The same IFC PS are triggered for Payita II as confirmed during the Environmental & Social Due Diligence (ESDD) process. Key environmental and social (E&S) risks and issues at Payita II include labor and working conditions, including OHS aspects, and associated impacts on the surrounding communities. Land acquisition was conducted on a willing-buyer, willing-seller basis, and further analysis of land ownership and land use did not raise any concerns from the perspectives of PS5 or PS6. Impacts on Haitian communities, which are considered vulnerable groups in the Dominican Republic, are not expected. All the Project’s workforce is expected to be local; therefore, no accommodation camp is expected to be needed. No further land acquisition or resettlement was necessary for the 40m transmission line (T-line) associated with the Project due to the proximity of the substation. Updated assessments of the Borrower’s E&S performance indicate a good level of willingness and commitment to meet the IFC PS, built through previous interactions and existing working relationships with other European Development Finance Institutions.
More investments
| Date | Total FMO financing |
|---|---|
| 8/1/2025 | USD 11.25 MLN |
- Website customer/investment
- https://www.ecoener.es/en
- Region
- Latin America & The Caribbean
- Country
- Dominican Republic
- Sector
- Energy
- Publication date
- 8/1/2025
- Deadline for feedback
- 9/30/2025
- Total FMO financing
- USD 10.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+
- Translation
- https://www.fmo.nl/lcv-ecoener-solares-dominicana%2c-s.r.l.