Capital/Financing Update • Jan 11, 2022
Capital/Financing Update
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MPC Energy Solutions achieves financial close and starts construction for 21 MW solar power plants in El Salvador
Amsterdam/Oslo - 11 January 2022 - MPC Energy Solutions (MPCES) has achieved the
financial close of its Santa Rosa & Villa Sol solar photovoltaic (PV) plants in
El Salvador, which have a combined capacity of 21.07 MWp. The financial close
with local lender Banco Agrícola, a subsidiary of Bancolombia, also marks the
successful conclusion of the engineering phase. Enerland
Group (https://www.enerlandgroup.com/en/), the Spanish multinational EPC company
and contractor for this project, will commence construction works later this
month.
Energy production from the Santa Rosa & Villa Sol project is expected to start
in Q4 2022. The minor delay in project execution was caused by a change of the
construction contractor. The plants will generate around 43 GWh a year and MPCES
expects an annual revenue contribution from this project of around USD 3.5
million. The project's solar power will offer substantial environmental
benefits, avoiding nearly 11,000 tons of CO\2\ emissions per year.
Once commissioned, the solar plants will sell all their generated energy through
a 20-year USD-denominated power purchase agreement (PPA) with
CAESS (https://www.aes-elsalvador.com/es/caess), the local subsidiary of US
-based energy company AES. The total investment to reach COD is USD 25.3
million, of which 75% is financed through a 15-year project financing facility.
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 women in the construction workforce.
Martin Vogt, CEO of MPC Energy Solutions, said: "The Government of El Salvador
considers the energy sector a strong contributor to economic and social
development. The diversification of the energy mix towards clean energy sources
has been prioritized. This draws up a long-term energy strategy for the country
and shows the high potential of the renewable energy market. We are excited to
support the country in this important initiative."
El Salvador has a long history of renewable energy, primarily biomass,
hydropower, geothermal and recently solar PV. The deployment of renewable energy
technologies reached approximately 1.6 GW in 2021, providing about 30-40% of the
national energy supply. National energy demand grew by 6% p.a. in the past five
years and is still met mainly by oil fuelled thermal power. The electricity
market is liberalized and unbundled with the majority of power plants owned and
operated by private IPPs. The government has adopted the Paris Agreement and is
currently revising its Nationally Determined Contributions (NDC) to be in
compliance with its commitment to the 1.5°C global goal.
- ENDS -
About MPC Energy Solutions
MPC Energy Solutions ("MPCES") is a global provider of sustainable energy and
primarily focuses on low-carbon energy infrastructure, including solar and wind
assets, and other hybrid and energy efficiency solutions. The Company
participates in the full project lifecycle of renewable solutions, from early
-stage development through construction and operation. More details at www.mpc
-energysolutions.com
Media contacts
MPC Energy Solutions N.V.
Investor Relations & Public Relations
Email: [email protected]
Norway
Jo Christian Lund-Steigedal
Corporate Communications AS
Phone: +47 415 08733
Email: [email protected]
Americas
Perry Goldman
Montieth & Company
Phone: +1 (646) 8643568
Email: [email protected]
United Kingdom
Charles Font
Montieth & Company
Phone: +44 020 38575478
Email: [email protected]
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