German investor scoops up 6.5MW of distributed solar in El Salvador

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
El Salvador was home to a 286MW PV industry as of December 2018, according to IRENA (Credit: Flickr / Alexander Bonilla)

A German player has become the owner of a distributed solar pipeline in El Salvador, laying the groundwork for construction to launch later this year.

MPC Capital, a Hamburg-headquartered investor in real assets, has acquired a 6.5MW decentralised PV project in what it claims is its second renewable play in Central America.

The scheme has so far been co-developed between Costa Rican renewable firm Geo Ingeniería and Salvadorean engineering specialist Tecnica Internacional.

Deployment – set to cost US$7.5 million overall – is due to start in Q4 2019 and conclude before Q2 2020, by which point the plant should be up and running.

In a statement, MPC Capital explained EPC contracts are being drafted up, while talks on project financing are underway with what the firm described as “commercial lenders”.

The purchase is MPC’s first in El Salvador and was helped by the country’s “promising” mix of political support and conducive regulations, said Fernando Zúñiga, director at the asset manager.

MPC’s investment came via its Caribbean Clean Energy Fund, a platform launched in 2016 to purchase shares in renewable projects across the region.

The fund also owns the 51MW Paradise Park PV plant in Jamaica, which was backed by French and Dutch development money and began supplying power to the grid in June this year.

El Salvador, said by IRENA to host last year a 286MW PV industry, has added in recent years utility-scale projects sponsored by foreign players including Neoen and FinnFund.

Rogelio Castro Vasquez, CEO of Geo Ingeniería and a key figure in the 6.5MW project, said distributer energy will be particularly central in El Salvador’s future power mix.

“The market has its own advantages such as [using US dollars as] currency, avoiding the problem of exchange rates,” Castro Vasquez remarked.

Read Next

September 28, 2021
Investment manager Quinbrook Infrastructure Partners has acquired a 350MW solar-plus-storage site expected to be the largest single site PV install in the UK once completed.
PV Tech Premium
September 7, 2021
Liam Stoker reflects on DNV’s Energy Transition Outlook as the consultancy laments the “missed opportunity” of the pandemic to reset global decarbonisation efforts. With COP26 just two months away, is terawatts of growth enough?
August 24, 2021
Energy advisory DNV has acquired the consulting arm of Chile-based energy price forecaster Antuko, taking aim at the Latin America and Iberia power markets.
August 16, 2021
Brazilian energy company Cemig has released details of its latest auction for solar and wind, with 4.8GW of installed capacity entering.
August 11, 2021
The Caribbean’s leader in renewable energy, Jamaica, is looking to procure 320MW of renewables this year as part of plans to diversify its energy sector.
July 21, 2021
At least 455GW of new solar PV capacity will need to be installed each year by the end of this decade for the world to reach net zero status by 2050, new analysis by BloombergNEF (BNEF) has found.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021