MPC Energy Solutions commences construction of 65 MWp solar PV plant in Guatemala, 16-year PPA signed with IMSA Group

Amsterdam/Oslo – 26 February 2024 – MPC Energy Solutions (“MPCES”, “Company”) announced today that it has started construction of its 65 MWp solar photovoltaics (“PV”) plant San Patricio Renovables in Guatemala. The Company issued a limited notice to proceed to the project’s turnkey EPC contractor and thereby secured very competitive prices for PV modules and other critical equipment required for the project.

“We are thrilled to achieve another significant milestone in our company’s history. San Patricio is by far our largest project to date, demonstrating the scalability of our existing setup and emphasizing our ability to successfully develop greenfield projects in the region. Once operational, the project is expected to deliver long-term stable financial returns to our shareholders and will help us surpass the USD 20 million annual group revenue threshold. The construction of the solar PV plant is expected to be completed by mid-2025”, said Stefan H.A. Meichsner, Chief Financial Officer of MPCES.

MPCES today owns and operates five power-producing assets across Latin America and the Caribbean with an aggregate capacity of around 79 MWp (proportionate share MPCES: 66 MWp). San Patricio will be a significant addition to the production portfolio and nearly double the Company’s installed capacity. San Patricio alone is expected to generate revenues of more than USD 8 million per year at EBITDA margins above 80 percent. The total investment costs for the construction of the plant, including financing costs and risk contingencies, will be around USD 42 million.

Fernando Zuñiga, MPCES’s Managing Director for Latin America and the Caribbean, added: ”It is our mission to provide clean and affordable energy to countries across Central America and the Caribbean. San Patricio will be our sixth operational power plant once completed. The greenfield development only took around 12 months, which is truly a great accomplishment. It shows how quickly the energy transition can be implemented if all involved parties work focused and hand-in-hand, and that we have found great partners for this project.”

MPCES has signed a turnkey contract with the Enerland Group for the engineering, equipment procurement, and construction of the plant. Enerland also built the 21.3 MWp solar PV plant Santa Rosa & Villa Sol in El Salvador for MPCES, which commenced operations in early 2023 after just 12 months of construction.

Once operational, the plant is expected to generate around 141 GWh of electricity per year. As announced in February 2023 by MPCES, the output from the plant will be sold entirely to Ingenio Magdalena S.A. (IMSA) under a 16-year fixed-price PPA. The IMSA Group is Guatemala’s leading producer and exporter of refined sugar. The group, which processes 6.5 million tons of sugarcane per year, is also the largest private energy producer in Guatemala and supplies around 8 percent of Guatemala’s total energy consumption from its power generating facilities.

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