MPC Energy Solutions signs power purchase agreement for Colombian solar PV project
Press Release
Amsterdam/Oslo– 26 April 2021 – MPC Energy Solutions NV has signed a power purchase agreement (PPA) for Parque Solar Los Girasoles, a solar PV project under development in Colombia. The COP-denominated agreement includes the delivery of around 23 GWh a year over a 12 year period starting in Q2 2022. The agreement was signed with Grupo Renovatio, a leading Colombian energy trading firm and electricity supplier. This is MPC Energy Solutions’ first PPA since its listing on the Oslo Stock Exchange’s Euronext Growth segment on 22 January 2021.
The agreement has been secured through Grupo Renovatio’s private renewable energy auction, the first in the region, which seeks to provide an innovative solution that complements the energy sales and purchases mechanisms already available in the Colombian energy market, such as bilateral contracts with agents, non-regulated end users and public tenders. Construction of Parque Solar Los Girasoles is expected to start in Q3 2021, with energy production expected to start in Q2 2022. The project is part of the company´s 240 MWp solar portfolio, with five solar PV plants across three different regions within Colombia. This agreement between MPC Energy Solutions and Grupo Renovatio is the first one of a series of collaborations that the companies are discussing in Colombia.
Parque Solar Los Girasoles is located in the region of Norte de Santander, in a privileged radiation zone with nearby urban centres and transportation infrastructure, which ensures excellent conditions for construction and operation stages. The solar PV project which has a nominal capacity of 9.5 MW will avoid close to 100,000 tons of CO2 emmissions during the asset lifetime, considering the country’s CO2 emission factor.
Martin Vogt, CEO at MPC Energy Solutions, said: “This agreement is a great stepping stone for MPC Energy Solutions as we continue to build on our pipeline of projects in the region. With the Colombian government’s commitment to reduce carbon emissions and to decentralize and diversify the energy generation, we are likely to see a sharp increase in the share of renewable energies. Through beneficial partnerships such as this one with Grupo Renovatio, MPC Energy Solutions is committed to contribute to the green recovery and to become a leading independent power producer in Colombia.”
André Fraga, CEO at Grupo Renovatio, said: “At Grupo Renovatio, we are very pleased to sign this PPA with such a renowned international corporation. Our innovative efforts to organize, what has been coined as Latam’s first private renewable energy auction, have found high interest from key players willing to tackle climate change and to promote alternative energies in the region. This PPA is a milestone for Renovatio in its mission to become Colombia´s first 100% renewable energy supplier”.
The announcement follows recent news that MPC Energy Solutions has secured exclusivity for a portfolio of projects across the region.
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About MPC Energy Solutions NV
MPC Energy Solutions (ticker: "MPCES") is a global provider of sustainable energy and primarily focuses on low-carbon energy infrastructure, including solar and wind assets, and other hybrid and energy efficiency solutions. The Company participates in full project lifecycle of renewable solutions, from early-stage development through construction and operation. More details, including an updated company presentation on the pipeline development, at www.mpc-energysolutions.com
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Forward-looking statements
This announcement contains forward-looking statements about the Company's financial and operating performance, business plans and prospects that involve substantial risks and uncertainties. Actual results could differ materially from the expectations and projections set forth in those statements and, consequently, no forward-looking statement can be guaranteed. Such risks and uncertainties include, among other things, the uncertainties inherent in the development, construction and operation of renewable energy assets. The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.