MPC Capital has successfully secured the financing for the construction of San Isidro Fotovoltaica, a 6.5 MWp solar PV project in El Salvador with construction expected to commence in Q2 2020 and commissioning in Q4 2020.
Courtesy of NREL
The financing agreements for the solar farm were signed with local Salvadorean bank Banco Agrícola. The project attracted an investment volume of approximately $7.8 million. A 20-year USD-denominated power purchase agreement (PPA) with CAESS, the local subsidiary of the US-based energy company AES, is in place. Additionally, MPC Capital signed an Engineering, Procurement and Construction (EPC) contract with Enertiva, a Central American EPC company specialised in the construction of solar energy projects in the region.
Under the EPC contract, Enertiva will complete and hand over the San Isidro project on a turnkey basis. The company will also provide the operation and maintenance services to the project through an O&M agreement.
“San Isidro Solar Park demonstrates our capability and competence as an eco-conscious development partner” said Martin Vogt, managing director at MPC Renewable Energies. “The project will cut down carbon dioxide equivalent emissions by 2.3 kilotonnes annually and reduce CO2-equivalent emissions by 58.7 kilotonnes in total. We see it as our responsibility to identify and leverage opportunities that benefit both our investors and the environment. San Isidro Solar Park is not only attractive to investors who are looking to capitalise on clean energy assets – it also brings El Salvador one step closer to a low-carbon society. The country, just like the rest of the Central American region, has a tremendous renewable energy potential, with a bright future for solar and wind adoption.”
San Isidro Solar Park is MPC Capital’s third investment in Central America and the Caribbean, after Tilawind, a 21 MW operating wind farm in Costa Rica, and Paradise Park, a 51 MWp solar PV park in Jamaica, which started energy production mid 2019.