The solar plants will sell all their generated energy through a 20-year US$ denominated power purchase agreement (PPA) with CAESS, the local subsidiary of US-based energy company AES. The total investment is US$26 million of which 75% is financed through a project financing facility.
“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.” said Martin Vogt, Chief Executive Officer at MPC Energy Solutions.
Energy production from the Santa Rosa & Villa Sol project is expected to start in 2022. When commissioned, the plants will generate almost 43 GWh/yr. MPCES expects an annual revenue contribution from this project of at least US$3.5 million. The project’s solar power will offer substantial environmental benefits, avoiding nearly 11 000 tpy of CO2 emissions. As part of MPCES’s ongoing commitment to Environmental, Social and Governance (ESG) measures, the firm has set a minimum target of 10% for the participation of females in the construction workforce.
Martin Vogt said: “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.”
For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.
The Summer issue of Energy Global features a varied spectrum of in-depth technical articles detailing recent projects, future projections, and technological advancements in the renewables sector, from companies including CEWEP, Enel Green Power, Turboden S.p.A., Cornwall Insight, and more.
Read the article online at: https://www.energyglobal.com/solar/03092021/mpc-energy-solutions-selects-epc-contractor-for-solar-projects-in-el-salvador/
Read More: MPC Energy Solutions selects EPC contractor for solar projects in El Salvador