The main Project outcomes are the supply of affordable, reliable, and clean energy to commercial and industrial consumers, while enhancing their resilience to grid constraints and energy supply disruptions. By supporting the deployment of distributed generation and battery storage solutions, the Project will help businesses secure access to sustainable electricity, improve energy reliability, and reduce their environmental footprint. At the market level, the Project will contribute to increasing the competitiveness and sustainability of Mexico’s power sector by supporting the expansion and replication of distributed energy solutions for commercial and industrial users. The Project demonstrates the scalability of integrated distributed generation and energy storage business models, helping to catalyze private investment in distributed energy infrastructure and supporting the country’s broader energy transition objectives. Through the expansion of clean energy generation, the Project is also expected to contribute to the reduction of greenhouse gas emissions and promote the adoption of innovative technologies that strengthen the integration of renewable energy into the electricity system.

IFC has both financial and non-financial additionality associated with the proposed investment. (i) IFC’s financial additionality is driven by the provision of a long-term financing package tailored to the characteristics of distributed generation and battery storage assets. The proposed structure offers financing conditions that are better aligned with the underlying asset life and contracted revenue profile, helping to mitigate refinancing risks and support the expansion of the Company’s distributed energy platform. Such financing solutions are not readily available in the local market, where lenders typically offer shorter tenors and have limited appetite for emerging distributed generation business models. In addition, IFC’s participation is expected to mobilize significant domestic and international capital alongside its own account financing, supporting the development of a broader and more diversified financing market for distributed energy infrastructure in Mexico. (ii) IFC’s non-financial additionality stems from its support to strengthen the Company’s sustainability framework, reporting, and risk management practices in line with international standards. IFC will provide guidance on the development of a Green Loan Framework, greenhouse gas accounting methodologies, and enhanced sustainability reporting. IFC will also support the adoption of international environmental and social standards and contribute to reducing information and market barriers that currently limit financing for distributed energy portfolios. Through its engagement with market participants and risk assessment processes, IFC will help strengthen confidence in the sector and facilitate greater participation of financial institutions in distributed generation and BESS investments.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
End-user Tariffs	U$c/KWh	End User Tariff CFE	Not Available	Not Available	Not Available
GHG Emissions Reduction/Avoidance per year	ton CO2e per year		Not Available	Not Available	Not Available

This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012) given that the potential adverse environmental or social risks and/or impacts are limited, few in number, site-specific, largely reversible, and readily addressed through mitigation measures. Key E&S issues and risks include: the Sponsor’s management and monitoring systems to assess and manage E&S risks and impacts, consistent management of labor and working conditions and OHS policies and practices; resource efficiency measures; monitoring and management of waste and hazardous materials; emergency planning and response, impacts on nearby community health and safety; supply chain; and the company's stakeholder engagement activities.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.