MPC Energy Solutions (MPCES) has chosen Isotron, a part of Spanish Grupo Isastur, as EPC contractor for building its Santa Rosa and Villa Sol solar photovoltaic (PV) plants in El Salvador that have a total capacity of 21.07 MWp.
The building work will begin in September 2021 following financial close with the project financing lender.
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These renewable power plants are completely owned by MPCES.
This is the first project to commence construction from the development pipeline of the firm.
The solar plants will sell the power generated through a 20-year power purchase agreement (PPA) with CAESS, the subsidiary of US-based energy company AES.
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The total investment on these projects is $26m, of which 75% is financed through a project financing facility.
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By GlobalDataMPC Energy Solutions CEO Martin Vogt said: “The selection of the construction contractor is an important milestone. The groundbreaking of Santa Rosa & Villa Sol in September shows the inherent value of the project portfolio we have had under ownership since our stock market debut earlier this year and is another proof point that we can successfully execute projects in the region.
“More than 60% of the energy generated in El Salvador comes from clean and renewable sources, largely thanks to the country’s efforts to diversify its power mix. This shows the high potential of the market and we are excited to support the country in this important initiative.”
The power production from the Santa Rosa & Villa Sol project is expected to commence in 2022.
Once commissioned, the power facilities will produce almost 43 GWh a year.
MPCES expects an annual revenue contribution from the project of at least $3.5m.
The project’s solar power will provide environmental benefits, eliminating 11,000t of CO2 emissions annually.
Vogt added: “This solar PV project perfectly aligns with our strategy to build high-quality renewable energy assets together with private sector clients in Central America and it is another step towards our aim to become a leading Independent Power Producer (IPP) in the region. Our long-standing network and expertise in this region will help building a strong and diversified portfolio which will generate attractive returns for our shareholders.”
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The power production from the Santa Rosa & Villa Sol project is expected to commence in 2022. Credit: andreas160578 from Pixabay
