Dutch clean energy developer MPC Energy Solutions has started construction of a 65MWp solar project in Guatemala, and plans to commission the project by mid-2025.
The San Patricio Renovables project will be the company''s largest single-site solar project by capacity, and almost double the size of MPC''s power generation portfolio in Latin America and the Caribbean, which currently boasts 79MWp of capacity.
The Enerland Group, a Spanish energy supplier, will complete engineering, procurement and construction (EPC) work at the project, having previously completed EPC work at MPC''s 23.1MWp Santa Rosa & Villa Sol project in El Salvador. MPC has also signed a power purchase agreement (PPA) to sell power generated at the project to Ingenio Magdalena S.A., a Guatemalan sugar producer that accounts for 8% of the country''s total energy generation, for the next 16 years.
"San Patricio will be our sixth operational power plant once completed," said Fernando Zuñiga MPC''s managing director for Latin America and the Caribbean.
"The greenfield development only took around 12 months, which is truly a great accomplishment," added Zuñiga. "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.”
Zuñiga''s comments follow increasing interest in the Central American solar sector, with a 2022 report from Wood Mackenzie noting that, until 2050, solar is likely to be the most cost-competitive source of power generation in the region. Wood Mackenzie also notes that the average utility-scale system costs in a number of Latin American countries are expected to fall by 9% in the coming years, creating encouraging economic conditions for new solar investments in the region.
Indeed, a report from the International Renewable Energy Agency (IRENA) noted that the PV capacity of Central and Latin America could grow by 40%, to more than 280GW, by 2050, and these favourable conditions have encouraged companies such as MPC to expand their footprint in the region. Earlier this month, Zuñiga spoke to PV Tech Premium about MPC''s work in the region, and some of the opportunities present in the Central American solar sector.
MPC itself has already announced a number of ambitious plans for the region, including the construction of a PV plant in Panama, with a total generation capacity of up to 70MWp, and the completion of a 12.3MW project in Colombia.
In response to your feedback, we have upgraded our product offerings and features to bring you the best experience.
Enerland Group, a Spanish firm, has announced its expansion into Guatemala’s renewable energy market with the inauguration of its headquarters in the country and the commencement of construction on its inaugural photovoltaic park, Magdalena Solar, boasting a capacity of 66 MWp.
Expected to be operational by mid-2025, Magdalena Solar is projected to generate approximately 141 GWh of electricity annually. Enerland Group will oversee the comprehensive construction of the project on behalf of German company MPC Energy Solutions, building upon their successful collaboration on the 21.4 MWp Santa Rosa and Villa Sol plant in El Salvador in 2022.
Enerland Group’s foray into Guatemala began in 2021 with engineering projects and field tests for photovoltaic parks, along with active participation in energy sector events to deepen understanding of regional dynamics and needs. The company inaugurated its new office in Guatemala City’s Citibank Tower complex at the start of 2024, signaling its commitment to offering turnkey EPC (Engineering, Procurement, and Construction) and Operation and Maintenance services nationwide.
Notably, Guatemala has seen previous ventures into solar energy, including the announcement of a 5 MW photovoltaic project in 2014 and a subsequent tender for a 110 MW project in 2019, which was later cancelled. As of 2023, the country had an installed photovoltaic capacity of 105 MW, according to IRENA statistics.
Enerland Group’s entry into Guatemala’s renewable energy sector underscores its dedication to fostering sustainable energy solutions and contributing to the country’s energy transition efforts.
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.
MPCES will hold a webcast presenting the 2023 review, strategy update and outlook for 2024. on Monday, 26 February 2024. There will be a Q&A session after the presentation, and a recording of the webcast will be published on the Company''s website afterwards.
Date: 26 February 2024 Time: 10:00 am CET Duration: 60 minutes incl. Q&A
The live webcast can be accessed through the following link: https://hca.videosync /2024-02-26-mpces/register
About Guatemala california solar energy
As the photovoltaic (PV) industry continues to evolve, advancements in Guatemala california solar energy have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Guatemala california solar energy for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Guatemala california solar energy featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
Related Contents
