In Short

• IFC provides $600 million loan to ENGIE Perú for renewable energy expansion.
• Funding supports solar, wind, and battery storage projects in Peru.
• Loan linked to climate goals and gender equality in the energy sector.

The International Finance Corporation (IFC), part of the World Bank Group, has approved a corporate loan of up to US$600 million for ENGIE Energía Perú, one of Peru’s largest power generation companies.

This funding is aimed at supporting the development of renewable energy projects and speeding up the country’s transition to a low-carbon economy.

The first part of the financing, US$120 million, is a Green and Sustainability-Linked Loan. This type of loan follows international standards set by the Loan Markets Association and the International Capital Market Association. It links financing to specific sustainability targets and marks the first agreement of its kind between IFC and ENGIE Perú.

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The loan will be used for three main projects: the construction of the Central Expansión Solar Intipampa in Moquegua (51.7 MW), the refinancing of the Duna and Huambos wind farms in Cajamarca (36.8 MW), and part of the Chilca-BESS battery energy storage system (26.5 MW) at the ChilcaUno Thermal Power Plant.

The financing comes with three Key Performance Indicators (KPIs) to drive real impact. These include increasing the share of renewable energy in ENGIE Perú’s overall capacity, implementing climate adaptation plans for all facilities to improve resilience, and increasing the number of women in management positions to promote gender equality in the energy sector.

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IFC representatives said this financing shows their commitment to economic growth, job creation, climate resilience, and access to clean energy in Peru. ENGIE’s leadership added that the funding will allow them to expand their renewable energy portfolio while meeting high environmental, social, and safety standards. Currently, renewables make up 30% of ENGIE Perú’s output, and it has a development pipeline of more than 1,600 MW.

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Source: IFC