MPC Energy Solutions further expands pipeline with three projects in Panama and Mexico
15 Mar 2021
Solar PV and wind farm projects with a total capacity of more than 140 MW secured by entering into exclusivity agreements in Panama and Mexico
Initial IPO pipeline of 136 MW now expanded to a total of approximately 300 MW of operating, ready-to-build and development projects in Latin America and the Caribbean
Further diversification of the pipeline regarding country-focus, technology and project status
Amsterdam/Oslo – 15 March 2021 – MPC Energy Solutions NV (the Company) has secured exclusivity for a portfolio of projects in Panama and Mexico, continuing its strong start to operations since its IPO in January 2021. The news follows an announcement earlier this month on the Company making significant progress in the execution of its project pipeline and securing exclusivity for two projects in Colombia and the Eastern Caribbean.
The new projects have a total capacity of more than 140 MW in operational, ready-to-build and development stages, with debt financing being provided by development finance institutions. All new projects are expected to generate internal rates of return (IRR) exceeding the required return for the Company. The operational part of the portfolio sells its power through USD-denominated power purchase agreements to international corporates and MPC Energy Solutions intends to also secure USD-denominated power purchase agreements for the ready-to-build and development stage projects. The ready-to-build and development projects are expected to start construction in 2021 and 2022. With the addition of these assets, the pipeline of exclusively secured projects increases to about 300 MW, including the initial IPO pipeline of 136 MW.
MPC Energy Solutions expects that it will secure further exclusivity agreements in the upcoming weeks. The steadily growing project pipeline includes wind, solar and energy efficiency projects, both with development, ready-to-build and operational status. In line with the Company’s strategy and initial geographical focus, all projects are located in a diversified set of Latin America and the Caribbean countries, with a healthy mix of national and corporate off-takers.
Martin Vogt, CEO of MPC Energy Solutions, said: "In the past weeks we have already secured exclusivity for four projects in addition to our initial IPO pipeline. This shows the strong start to our activities by executing on the existing project pipeline and simultaneously adding attractive projects to secure short- to mid-term growth potential. It is exciting to see the rapid growth of our pipeline as we take further steps towards our commitment to aid the energy transition in Latin America and the Caribbean. As we work towards lowering the global carbon footprint, our diversified portfolio is set to cater to the energy needs of the region helping boost its resilience.”
At the beginning of the year, it was announced that MPC Energy Solutions had successfully raised a total of USD 100 million in advance of its listing on Oslo Stock Exchange’s Euronext Growth segment on 22 January 2021.