IDB supports innovative roadway lighting project in Ensenada, Mexico
“Through IDB’s financing, Optima Energ?a is able to be among the first to implement a municipal lighting project developed under an energy savings performance structure in all of Latin America. This will enable a demonstration effect that could lead to the transformation of street lighting systems in Mexico,” said Enrique Gomez Junco, CEO of Optima Energ?a.
The investment is expected to reduce Ensenada’s electricity consumption by 260 million kWh over the life of the project and generate cost savings to the municipality in the form of a of 59 percent reduction in electricity expenses. These operational savings pay for the entire investment and allow Ensenada to improve its infrastructure with no additional capital or operational expenditures. The LED technology will boost the quality of light in the streets and contribute to improved public safety in Ensenada, the third largest city in the state of Baja California.
“The project will allow Optima Energ?a to demonstrate the benefits of investments in LED street lighting projects by providing operational savings and improved public safety to Ensenada. The IDB is also helping Optima Energ?a implement a gender inclusion program which will strengthen its operations, as well as promote gender equality efforts in Mexico,” said Kelle Bevine, Chief of Strategy Management in the IDB’s Structured and Corporate Finance Department.
The project, which is being co-financed by the Canadian Climate Fund for the Private Sector in the Americas (C2F), will reduce CO2 emissions by about 150,000 tons over 20 years. The project demonstrates an innovative approach to improving energy efficiency that can be replicated in municipalities throughout Mexico by using the savings generated to finance the upgrade to LED.
This transaction is being financed under the IDB’s Climate and Clean Energy Facility, which offers $100 million in financing for energy efficiency and self-supply renewable energy projects throughout the region. The Facility was established by the IDB with support from a combination of donor resources: the Nordic Development Fund, the Clean Technology Fund and the Scaling-up Renewable Energy Program. Through this Facility, the IDB plans to continue to provide loans to other innovative energy efficiency roadway lighting projects throughout Latin America and the Caribbean.