MPC Energy Solutions (MPCES), a provider of sustainable energy, primarily focusing on low-carbon energy infrastructure, including solar and wind assets, acquired 15.8 MW Los Santos Solar I project in Ahumada Chihuahua, in the North of Mexico. The project has been fully operational since 2017.
Renewable energy project Buenavista Renewables financed and developed the project and has a Power Purchase Agreement (PPA) with German cable manufacturer Leoni Cable and the International De La Salle Educational Network.
MPCES has acquired full ownership of the Los Santos Solar, and 20-year project financing has been provided by the U.S. Government’s Development Finance Corporation (DFC) and the North American Development Bank (NADB).
“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. This deal is another confirmation that we are on track to deliver on our project pipeline, implying 177 MW installed capacity and $40 million of asset-level revenue by the end of 2023. It reinforces our position as a leader in the region’s renewable energy market with close to 11,000 MW of installed wind and solar PV capacity and potential for further growth given the abundance of resources and demand for clean energy from the private and public sectors,” said Martin Vogt, CEO at MPCES.
The closing of the acquisition is expected to occur in Q1 2022 and is subject to customary conditions. Los Santos Solar I has the potential to be extended from 15.8 MW to approximately 90 MW, and MPCES has signed a Right of First Refusal (ROFR) agreement with the developer. The extension may be ready-to-built in 2023.
“Los Santos Solar I is a high-quality asset with solid private corporate clients and an attractive USD-denominated PPA in place. 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,” added Martin.
According to Mercom’s 9M and Q3 2021 Solar Funding and M&A Report, there were 29 solar M&A transactions in Q3 2021 compared to 34 M&A transactions in Q2 2021. By comparison, there were 17 transactions in Q3 2020. In 9M 2021, there were a total of 83 transactions compared to 42 deals in 9M 2020.