MPC Caribbean Clean Energy Fund signs the acquisition of the Monte Plata solar park in the Dominican Republic
ST. MICHAEL, Barbados – 04 June 2021 – MPC Caribbean Clean Energy Fund LLC announced the signing of the acquisition of the operational Monte Plata solar park in the Dominican Republic. MPC Caribbean Clean Energy Fund (the Investment Company of the regionally publicly listed MPC Caribbean Clean Energy Limited) led an equity consortium comprised of ANSA McAl and two minority investors from the Dominican Republic and Canada, that together intends to acquire the full ownership of the asset. The seller is United Renewable Energy Co. Ltd, a Taiwanese solar module producer and system integrator. The closing of the transaction is subject to customary conditions and expected to take place in Q3 2021. MPC Caribbean Clean Energy Fund will indirectly hold a shareholding of approximately 36% in the asset.
The Monte Plata solar park, which currently sells all of its generated power under a 20 year US-dollar denominated PPA to the state-owned Dominican Corporation of State Electrical Companies, was the first utility-scale power station in the Dominican Republic and was also the largest project of its kind in the Caribbean at the time of commissioning in 2016. The project attracted USD 38 million of senior debt from the Dutch and German development finance institutions FMO and DEG in 2018. The solar park has an operational capacity of 33.4 MWp which is set to be extended to approximately 74 MWp by 2022. This will increase its energy production to around 115,000 MWh per annum. Over the course of its operational lifespan the expanded solar park will help avoid the production of nearly 2 million tonnes of CO2.
Gözde Kurusoy, Director of Banking and Finance for Renewable Energies at MPC, said: “The Dominican government’s renewable energy roadmap set a target to reduce greenhouse gas emissions by 25% by 2030 compared to 2010. It aims to do this by diversifying the generation base away from fossil fuels. We are committed to invest in the transition to cleaner energy infrastructure to help make the region more resilient and independent.
“With this acquisition, MPC Caribbean Clean Energy Fund fosters its leading role and expanding its regional presence with operational solar and wind assets in Jamaica, Costa Rica, El Salvador and now the Dominican Republic. We are very pleased to add such an attractive asset to our portfolio and this along a strong consortium of experienced regional and international investors. This acquisition is evidence of our commitment to accelerate economic growth, support the transition towards a low carbon economy and drive community and social impact even during such challenges times that the region experiences with the COVID-19 pandemic.”
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About MPC Caribbean Clean Energy Ltd
MPC Caribbean Clean Energy Ltd (the Company) is a Caribbean-based investment company which was established in 2017 with the clear vision to enable private and institutional investors from Jamaica and Trinidad and Tobago to invest through the Company into one of the few investment funds which invests in renewable energy projects in Jamaica, Trinidad and Tobago and the wider Caribbean region: the MPC Caribbean Clean Energy Fund LLC (the Investment Company or the Fund). More details at www.mpc-cleanenergy.com
MPC Caribbean Clean Energy Ltd.
St. Michael, Barbados, BB14004
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