MPC Caribbean reaches fin close for phase II of Dominican solar farm

Caribbean-based renewables investor MPC Caribbean Clean Energy Fund LLC has closed the financing needed to support the construction of phase II of its partially-owned 33.4-MWp Monte Plata solar farm in the Dominican Republic.

The firm said on Saturday it had obtained a project finance loan from the Dutch development bank FMO, the Panamanian financial institution and asset manager CIFI, and the CIFI Sustainable Infrastructure Debt Fund, which channels resources toward sustainable infrastructure development in Latin America and the Caribbean.

The Monte Plata solar farm was commissioned in 2016, becoming the largest project of its kind in the Caribbean at the time, according to MPC Caribbean Clean Energy Fund. The clean energy fund became an indirect shareholder in the plant following a 2021 agreement to acquire a roughly 36% stake.

Monte Plata operates under a 20-year US-dollar denominated power purchase agreement (PPA) with the state-owned Dominican Corporation of State Electrical Companies.

In phase II, the solar farm will be expanded to 75.6 MWp of installed capacity. The additional 42.2-MWp capacity will be monetised by securing a 15-year US-dollar denominated PPA, MPC Caribbean Clean Energy Fund said.

Monte Plata phase II is expected to reach commercial operation date in the fourth quarter of 2024.

MPC Caribbean Clean Energy Fund is part of German asset and investment manager MPC Muenchmeyer Petersen Capital AG (ETR:MPCK), also known as MPC Capital AG.

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