Amsterdam-based global clean energy provider MPC Energy Solutions (MPCES) announced its entry into the Guatemalan market after signing a long-term power purchase agreement (PPA) with Comercializadora de Energía Para el Desarrollo, a subsidiary of Ingenio Magdalena (IMSA Group).
IMSA Group is the largest private energy producer in Guatemala, supplying 8% of Guatemala's total energy consumption.
The agreement with IMSA Group involves a solar power plant with an estimated capacity of 65 MWp, as a new milestone for MPCES' expansion plan across Latin America and the Caribbean.
"Establishing development activities in Guatemala demonstrates how MPC Energy Solutions is spearheading the drive to meet high demand for renewable energy in Central America, as countries across the region seek to decarbonize energy production," said Fernando Zuniga, Managing Director for Latin America and the Caribbean at MPC Energy Solutions.
"We are excited to partner with MPC Energy Solutions for this important and innovative project. This PPA is a milestone for IMSA Group as it confirms our commitment to help accelerate the energy transition in Guatemala," said Jorge Leal, CEO of IMSA Group.
The development of the solar power plant will start off after the announcement. The construction will begin within 12 months.
Guatemala set an ambitious target for 80% of its electricity to be generated from renewable sources by 2027. However, renewables only made 36% of the energy mix in 2021, with hydroelectricity taking a significant share.
Though challenges remain, relatively high solar irradiance levels give the country a strong potential to increase solar deployment for a healthier clean energy mix.