MPC Energy Solutions (MPCES) has selected ISOTRON, part of the Spanish group ISASTUR, as EPC contractor for the construction of its Santa Rosa and Villa Sol solar photovoltaic (PV) plants in El Salvador, which will have a combined capacity of 21.07MWp.
Construction will commence in September upon financial close with the project financing lender, a statement said. The renewable power plants are fully owned by MPCES, and the statement added that this is the first project to start construction from the proprietary development pipeline of the company.
"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, CEO at MPC Energy Solutions.
He added that the solar plants will sell all their generated energy through a 20-year USD-denominated power purchase agreement (PPA) with CAESS, the local subsidiary of US-based energy company AES. The total investment is USD$26 million of which 75% is financed through a project financing facility.
The MPCES statement said that energy production from the Santa Rosa & Villa Sol project is expected to start in 2022. Once commissioned, the plants will generate almost 43GWh a year. MPCES expects an annual revenue contribution from this project of at least $3.5 million.
The project's solar power will offer substantial environmental benefits, avoiding nearly 11,000 tons of CO2 emissions per year. As part of MPCES's ongoing commitment to Environmental, Social and Governance measures, the firm has set a minimum target of 10% for the participation of females in the construction workforce.
"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,” Vogt concluded.