Renewable energy developer MPC Energy Solutions has signed a long-term power purchase agreement (PPA) with sugar cane exporter IMSA for a 65MW solar PV plant in Guatemala.
The agreement was made for the power of the plant with sugar cane processor and exporter Ingenio Magdalena S.A (IMSA) subsidiary Comercializadora de Energía Para el Desarrollo S.A.
Project development will begin immediately and construction of the plant is set to start within twelve months. IMSA Group is the largest private energy producer in Guatemala and supplies around 8% of the country''s power, it claimed.
Fernando Zuniga, managing director for Latin America and the Caribbean at MPC Energy Solutions said: "Establishing development activities in Guatemala demonstrates how MPC Energy Solutions is spearheading the drive to meet high demand for renewable energy in Central America, as countries across the region seek to decarbonize energy production."
PV Tech reported in March last year that solar PV represents the most cost-effective route to decarbonisation for Central American countries, as the International Renewable Energy Agency reported that installations must double in the next decade.
A recent policy change in Mexico supporting a state owned solar-plus-storage project was hailed as a shift in thinking for the country last month, which is one of the largest markets in the region.
Enerland Group, a Spanish firm, has announced its expansion into Guatemala’s renewable energy market with the inauguration of its headquarters in the country and the commencement of construction on its inaugural photovoltaic park, Magdalena Solar, boasting a capacity of 66 MWp.
Expected to be operational by mid-2025, Magdalena Solar is projected to generate approximately 141 GWh of electricity annually. Enerland Group will oversee the comprehensive construction of the project on behalf of German company MPC Energy Solutions, building upon their successful collaboration on the 21.4 MWp Santa Rosa and Villa Sol plant in El Salvador in 2022.
Enerland Group’s foray into Guatemala began in 2021 with engineering projects and field tests for photovoltaic parks, along with active participation in energy sector events to deepen understanding of regional dynamics and needs. The company inaugurated its new office in Guatemala City’s Citibank Tower complex at the start of 2024, signaling its commitment to offering turnkey EPC (Engineering, Procurement, and Construction) and Operation and Maintenance services nationwide.
Notably, Guatemala has seen previous ventures into solar energy, including the announcement of a 5 MW photovoltaic project in 2014 and a subsequent tender for a 110 MW project in 2019, which was later cancelled. As of 2023, the country had an installed photovoltaic capacity of 105 MW, according to IRENA statistics.
Enerland Group’s entry into Guatemala’s renewable energy sector underscores its dedication to fostering sustainable energy solutions and contributing to the country’s energy transition efforts.
AMSTERDAM and OSLO, Norway, Feb. 26, 2024 /PRNewswire/ -- MPC Energy Solutions ("MPCES", "Company") announced today that it has started construction of its 65 MWp solar photovoltaics (''PV'') plant San Patricio Renovables in Guatemala. The Company issued a limited notice to proceed to the project''s turnkey EPC contractor and thereby secured very competitive prices for PV modules and other critical equipment required for the project.
MPCES today owns and operates five power-producing assets across Latin America and the Caribbean with an aggregate capacity of around 79 MWp (proportionate share MPCES: 66 MWp). San Patricio will be a significant addition to the production portfolio and nearly double the Company''s installed capacity. San Patricio alone is expected to generate revenues of more than USD 8 million per year at EBITDA margins above 80 percent. The total investment costs for the construction of the plant, including financing costs and risk contingencies, will be around USD 42 million.
Fernando Zuñiga, MPCES''s Managing Director for Latin America and the Caribbean, added: "It is our mission to provide clean and affordable energy to countries across Central America and the Caribbean. San Patricio will be our sixth operational power plant once completed. The greenfield development only took around 12 months, which is truly a great accomplishment. It shows how quickly the energy transition can be implemented if all involved parties work focused and hand-in-hand, and that we have found great partners for this project."
MPCES has signed a turnkey contract with the Enerland Group for the engineering, equipment procurement, and construction of the plant. Enerland also built the 21.3 MWp solar PV plant Santa Rosa & Villa Sol in El Salvador for MPCES, which commenced operations in early 2023 after just 12 months of construction.
Once operational, the plant is expected to generate around 141 GWh of electricity per year. As announced in February 2023 by MPCES, the output from the plant will be sold entirely to Ingenio Magdalena S.A. (IMSA) under a 16-year fixed-price PPA. The IMSA Group is Guatemala''s leading producer and exporter of refined sugar. The group, which processes 6.5 million tons of sugarcane per year, is also the largest private energy producer in Guatemala and supplies around 8 percent of Guatemala''s total energy consumption from its power generating facilities.
MPCES will hold a webcast presenting the 2023 review, strategy update and outlook for 2024 on Monday, 26 February 2024. There will be a Q&A session after the presentation, and a recording of the webcast will be published on the Company''s website afterwards.
MPC Energy Solutions ("MPCES") is a global provider of sustainable energy and primarily focuses on low-carbon energy infrastructure, including solar and wind farms, and other hybrid and energy efficiency solutions. The Company participates in the full project lifecycle of renewable solutions, from early-stage development through construction and operation. More details at
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