Amsterdam-based global clean energy provider MPC Energy Solutions (MPCES) announced its entry into the Guatemalan market after co-signing a long-term power purchase agreement (PPA). Comercializadora de Energía Para el Desarrolloa 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 includes a solar power plant with an estimated capacity of 65 MWp and is a new milestone in MPCES’ expansion plan in Latin America and the Caribbean.
“The establishment of development activities in Guatemala demonstrates how MPC Energy Solutions is driving the quest to meet high demand for renewable energy in Central America as countries across the region seek to decarbonize energy generation,” said Fernando Zuniga, Managing Director for Latin America and the Caribbean at MPC Energy Solutions.
“We are delighted to partner with MPC Energy Solutions for this important and innovative project. This PPA is a milestone for IMSA Group as it validates our commitment to help accelerate Guatemala’s energy transition,” said Jorge Leal, CEO of IMSA Group.
The development of the solar power plant starts after the announcement. Construction will start within 12 months.
Guatemala set an ambitious goal By 2027, 80% of electricity is to be generated from renewable sources. However, renewable energy accounted for only 36% of the energy mix in 2021, with hydropower taking a significant share.
Although challenges remain, relatively high solar radiation give the country strong potential to increase solar adoption for a healthier clean energy mix.