The Bolivian government has hired Isotron SAU, a unit of Spanish firm Isastur, to construct its first solar power plant in the northern region of Pando, bordering Brazil and Peru.
The $11.8 million solar power plant’s generating capacity of 5 MW is predicted to cover "more or less 50 per cent" of demand in the three towns, Energy Minister Juan Jose Sosa stated.
The contract was signed on the 17 May by representatives of state-owned Guaracachi and Isotron in Cobija, the capital of Pando, according to officials.
President Evo Morales said in an address that his administration was happy to be working well with several Spanish companies, including oil company Repsol who are partnering with state-owned YPFB for various energy projects.
Pando is one of two Bolivian regions not part of the national grid, and generates its electricity with diesel-powered turbines, said Sosa.
The current Pando power grid serves around 45 000 residents in Cobija and the towns of Puerto Rico and Porvenir, which produce a total power demand of 9 MW.
The local utility will save $3 million annually from 20 million litres of reduced diesel consumption.
Denmark is providing funding for half of the power project with the Bolivian government covering the remaining cost.
The plant is expected to begin initial generation with a 2 MW capacity in September, with the further 3 MW capacity coming online in December.