MPC Energy acquires Mexican solar project; plans to expand its capacity

MPC Energy Solutions

MPC Energy Solutions, a global leader in sustainable energy and low-carbon infrastructure, announced that it entered the renewable energy market in Mexico this Tuesday. The company acquired a 15,8-megawatts solar energy complex, the Los Santos Solar I, located in Chihuahua, North of Mexico.

Firstly, the solar complex has been fully operational since 2017. It was financed and built by multinational renewable energy project developer Buenavista Renewables. It also has Power Purchase Agreements denominated in dollars, with German cable manufacturer Leoni Cable; and the International De La Salle Educational Network.

The acquisition will give MPC Energy full ownership of the project, including its PPA’s. In fact, the Development Finance Corporation and the North American Development Bank, have provided MPC with a 20-year project financing.

According to the statement, the asset’s closing is still subject to customary conditions, but it will close around the first quarter of 2022.

Moreover, the capacity of Los Santos Solar is 15.8 MWp but can increase to 90 MWp. Consequently, MPC Energy signed a Right of First Refusal Agreement with Buenavista Renewables to expand the project’s capacity. The extension would be ready to build by 2023. However, the plant already avoids approximately 16,500 metric tons per year of CO2 emissions.

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MPC Energy with further growth potential in LAtin America

Furthermore, the acquisition solidifies MPC Energy’s position in Latin America; where the company has close to 11,000 MW of installed wind and solar capacity. Still, it has potential for further growth; given the abundance of resources and demand for clean energy from the private and public sectors.

About the matter, Martin Vogt, CEO at MPC Energy Solutions, said. “The acquisition of Los Santos Solar I marks our entry into the Mexican renewables market, further strengthening our regional presence, which now spans six countries across Latin America and the Caribbean.”

He also remarked. “This deal is another confirmation that we are on track to deliver on our project pipeline, implying 177 MW installed capacity and USD 40 million of asset-level revenue by the end of 2023.”

Finally, he underlined that the transaction reinforces the company’s position as a leader in the region. “As an operational asset, this project provides the company with immediate cash flows, while securing exclusive rights on the future project extension. It further boosts the returns we can offer our investors while assisting us in our mission to help the region’s transition to cleaner energies.”

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