Jamaica’s solar park performing above expectation but Tilawind wind farm in Costa Rica and San Isidrosolar park in El Salvador are below target

MPC Caribbean Clean Energy is reporting mixed performance in its Caribbean renewable assets, some of which operated below target in the first quarter of this year.

The stand out performance was Paradise Park in Jamaica, where the technical performance of the solar park met the expectations, despite difficult circumstances. The plant availability and the production output were above  target.

In its just released quarterly report to shareholders, MPC Caribbean Clean Energy advised that “the Tilawind wind farm in Costa Rica experienced low levels of wind but achieved good results and is slightly below the expected target. However, the plant availability for Tilawind was above expectations”.

However, at the beginning of 2021, the Costa Rican government-run electricity and telecommunications services regulator informed about changing the methodology for tariff band calculation for all wind farms in Costa Rica and therefore, the tariff for 2021 calendar year has been reduced effective February 10, 2021.

As of the first quarter of this year, Caribbean Clean Energy Fund LLC is in the process of assessing the commercial impact on revenues and is consulting with its legal adviser and the Costa Rican Renewable Energy Association.

San Isidro solar plant under performing

The recently commissioned solar park in El Salvador is slightly underperforming with a plant availability and production output below target. However, this is not unusual during the start-up phase in the first year.

MPC Caribbean Clean Energy Chairman Fernando Zuniga reported that “correction measures have been taken and should lead to an improvement in the relevant key figures and thus show positive results in a timely manner reporting solid performance in its regional operations during the first quarter of 2021″.

He sought to paint a positive picture of the first quarter performance of the company, which is listed on both the Jamaican and Trinidad Stock Exchanges. He stated that the first quarter ended March 31 saw the company attaining a few key activities, which were the culmination of main events that began in 2020.

These include the completion and successful commissioning of San Isidro, a 6.5 MW solar park in El Salvador, which was successfully acquired by its investment company, MPC Caribbean Clean Energy Fund LLC in the first quarter of 2021. Also, there is the clearance of the subscription of the capital raised via convertible note is being finalised and the additional US$10 million is expected to be invested in MPC Caribbean Clean Energy Fund LLC in the second quarter of 2021.

Posted healthy EBITA and weighted average availability

The chairman reported that, “during the quarter, the underlying assets of the company showed solid performance considering adverse weather conditions and operational challenges due to the COVID-19 pandemic”. The company’s Earnings Before Interest, Taxes and Amortization (EBITA), which is a measure of company profitability used by investors came in at a healthy US$1.81 million with energy output variation of minus 7.37 per cent and a weighted average availability of 97.75 per cent.

Regarding the outlook for the rest of the year, Zuniga, advised shareholders that “we are optimistic about the coming quarters. The company plans to further diversify its portfolio and optimise its asset performance in order to present sustained good results for the company’s shareholders. Referring to the constantly ongoing pandemic, the company sees itself well prepared for future challenges, due to proven measures. I thank our shareholders and my fellow directors for their support and trust during this precedent period”.