Mexico Advances Major Solar-and-Battery Project in Campeche

Mexico is moving ahead with one of its largest combined solar-power and battery-storage projects after Copenhagen Infrastructure Partners (CIP) reached financial close for the La Esperanza Solar development in Campeche, on the Yucatán Peninsula. The project will combine a 420-megawatt solar photovoltaic facility with a 150-megawatt battery energy-storage system capable of storing 750 megawatt-hours of electricity. Construction has already begun, with commercial operations expected in 2028. The development is particularly significant for the Yucatán Peninsula, where electricity demand has been increasing and additional generation and storage capacity is needed to strengthen the reliability of the regional power system.

The battery system is a central part of the project because it will allow electricity generated by the solar plant to be stored and supplied later, including during periods when sunlight is unavailable or demand is high. The 750 MWh storage capacity represents up to five hours of electricity storage at the battery’s rated 150 MW output. CIP says the project is its first investment in Mexico to reach financial close, marking an important step in the company’s expansion across Latin America’s renewable-energy market. La Esperanza Solar has also secured a long-term power-purchase agreement with CFE Calificados, the commercial arm of Mexico’s state electricity company that serves large customers.

Financing for the project includes approximately $510 million in debt facilities provided by BNP Paribas, JPMorgan Chase, Natixis Corporate and Investment Banking, Santander and Scotiabank. Equity investment is being provided by CIP’s Growth Markets Fund II, together with Mexican pension-fund administrator Profuturo. Once completed, La Esperanza Solar is expected to contribute both renewable electricity and greater flexibility to Mexico’s power system, while its large battery installation could help reduce the impact of fluctuations in solar generation. The project therefore represents more than a new solar farm: it reflects Mexico’s growing effort to combine renewable generation with energy storage as electricity demand rises and the country seeks a more reliable and flexible power network.