MPC Capital has acquired a 6.5 MW (DC) solar project in El Salvador, the German company’s second investment in Central America.
The project is under development and has a 20-year dollar-denominated power purchase agreement with CAESS, the local distribution subsidiary of AES Corp.
Rogelio Castro Vasquez, CEO of regional engineering firm Geo Ingeniería, and local partner Tecnica Internacional led the development of the distributed generation project.
MPC is currently finalizing the engineering, procurement and construction contract and project financing with commercial lenders, with total investment expected to come in at $7.5 million.
Construction will begin in the fourth quarter and generation is expected to start in the second quarter of 2020.
MPC's first investment in Central America was Tilawind, a 21 MW operating wind farm in Costa Rica. It reached financial close on the acquisition in May (PFR, 5/1)
"The project fits our strategy very well as we are continuously building up our diversified investment portfolio of selected high-quality renewable energy assets in the Central American and Caribbean region," said Fernando Zúñiga, director for Central America and the Caribbean at MPC, of the solar deal.
(A version of this article first appeared in IJGlobal).