The Inter-American Investment (IIC), on behalf of the Inter-American Development Bank (IDB) Group, has agreed to provide $75m in loan for the Solem PV project in Mexico.

The project which is sponsored by Cubico Sustainable Investments and Alten R.E. Developments America B.V. in the State of Aguascalientes, Mexico, will include two solar PV plants which will have a combined installed capacity of 350MW.

Considered to be the largest solar power plant in Latin America and one of the first renewable energy projects to have reached financial close under the new long-term auction after the Mexican government reformed its energy sector in 2014, the solar project is estimated to supply about 800GWh of clean energy per year.

The solar project can also help to avoid about 340,000 tons of CO2 from entering the atmosphere.

When completed, the solar project will be connected to the Mexican national grid and will contribute in the expansion of the country’s energy matrix, while providing renewable energy at affordable prices.

Out of the total cost of the project, which is $75m of financing provided by the IDG Group, 36% is offered by IDB, 24% by IIC, 27% by Canadian Climate Fund and 13% is from China-Co-Financing Fund for Latin America and the Caribbean.

 A member of the Inter-American Development Bank Group (IDB Group), IIC is a multilateral development bank that supports the private sector in Latin America and the Caribbean.

In July, it offered financing to build a transmission line between the cities of Melo and Tacuarembó in Uruguay, connecting projects that generate renewable energy for the country's electrical grid.