ANSA McAL is part of a multinational equity consortium that on Friday announced the signing of an agreement to acquire 100 per cent of the operational Monte Plata solar park in the Dominican Republic.
In a statement, MPC Caribbean Clean Energy Ltd, which is listed on the T&T and Jamaica stock exchanges, said its investment company, MPC Caribbean Clean Energy Fund LLC, led an equity consortium comprising itself, ANSA McAL and two minority investors from the Dominican Republic and Canada.
The statement did not announce the consideration for the acquisition, but said the seller is United Renewable Energy Company 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 per cent in the asset.
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.
The Monte Plata solar park currently sells all of its generated power under a 20-year US-dollar-denominated Power Purchase Agreement to the state-owned Dominican Corporation of State Electrical Companies.
The solar park 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 US$38 million of senior debt from the Dutch and German development finance institutions FMO and DEG in 2018.
“The Dominican government’s renewable energy roadmap set a target to reduce greenhouse gas emissions by 25 per cent 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,” said Gözde Kurusoy, Director of Banking and Finance for Renewable Energies at MP.
Kurusoy said: “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 challenging times that the region experiences with the Covid-19 pandemic.”
In a statement on its outlook, accompanying its financials for the three months ending March 31, 2021, MPC Caribbean Clean Energy Ltd said: “We are optimistic about the coming quarters. The company plans to further diversify its portfolio and optimise its asset performance in order to present sustained good results for the company’s shareholders.
“Referring to the constantly ongoing pandemic, the company sees itself well prepared for future challenges, due to proven measures.”