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.
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.
The Energy Storage Latin America agenda provides the industry with an unrivaled opportunity to discuss how the region is set to unlock the full potential of energy storage, accelerate deployment and address the main regulatory and financing challenges. The Energy Storage Summit Latin America is the first event of its kind, designed with a clear goal to accelerate both dialogue and deployment of energy storage solutions. Hear from a world-class line up of industry speakers discussing: The changing market, Active and pending projects, Regulatory environment, Financing options and New storage technologies. This event is the only place where the entire energy storage value chain will be present. Enquire now and be part of an unparalleled platform enabling you to network and do business with: Government, Utilities, Developers, EPCs, Investors and more.