San José, Costa Rica, June 30, 2021 – Impact asset manager Deetken Impact Sustainable Energy (DISE), announces the signing of agreements for the acquisition of the Monte Plata solar power plant in the Dominican Republic. DISE will participate through its two renewable energy Funds, H-REFF (Honduras Renewable Energy Financing Facility) and CABEF (Caribbean Basin Sustainable Energy Fund), that co-invest in Central America and the Caribbean. The two funds together with co-investors MPC Caribbean Clean Energy Fund LLC (MPC), Grupo Pais Solar S.A. (GPS) and ANSA McAL, will indirectly acquire full ownership of the operating Monte Plata solar park. The closing of the acquisition is subject to conditions that are expected to be met in the coming months.
This investment aligns well with our Funds’ mandate to contribute to the clean energy transition and to the achievement of the Sustainable Development Goals (SDGs) through investment in new renewable energy infrastructure in the Caribbean Basin. We are pleased to be collaborating with MPC and GPS to close the acquisition and to subsequently expand the project, with the intention to more than double the current capacity. As co-owner of the asset, DISE looks forward to supporting the project expansion and contributing to accelerating the transition to clean energy and adding resilience to the energy infrastructure in the Caribbean. Our investment also contributes to progress towards the Dominican Republic’s target of increasing its renewable energy capacity to 25% by 2025 as part of its strategy to achieve its commitments under the Paris Agreement. The country recently revised its approach and target for its carbon reduction commitment to a 27% reduction in carbon emissions relative to business as usual by 2030 (NDC-RD-2020).
“Investing in projects like Monte Plata and its planned expansion, in partnership with MPC and Grupo Pais Solar, allows us to continue supporting the energy transformation of the region, displacing thermal energy generation and reducing carbon emissions. Furthermore, the expansion will also contribute to the creation of new jobs and the reactivation of the economy affected by the COVID-19 pandemic.” Fernando Alvarado, CEO, Deetken Impact Sustainable Energy.
Monte Plata Solar project and planned expansion
Monte Plata is a 33.4 MWp solar power plant that has been in operation since 2016. Monte Plata sells the electricity it generates to the state-owned Dominican Corporation of State Electrical Companies under a US dollar denominated, 20 year power purchase agreement. The project has financing from international development finance institutions, the Dutch FMO and the German DEG.
The installed capacity of the plant will be expanded to approximately 74 MWp in 2022. After the expansion, annual energy production is estimated to be around 115,000 MWh, which will avoid up to 2 million tonnes of CO2 over the life of the project and create new quality jobs.
About Deetken Impact Sustainable Energy:
Deetken Impact Sustainable Energy (DISE) manages two funds that co-invest in renewable energy and energy efficiency projects and companies in Central America and the Caribbean. With $60MM in committed capital, the funds have approved investments in 15 companies in 6 countries. DISE is supported by its partnership with Deetken Impact, a Canadian impact asset manager focused on investments in women’s empowerment, clean energy, and social enterprises in Latin America and the Caribbean. DISE and Deetken Impact together manage $140 million in impact assets with a diverse team of seasoned impact investment professionals based in Central America, South America, the Caribbean, Mexico and Canada and a track record of more than two decades. DISE is a signatory to the Operating Principles for Impact Management and has been selected to the ImpactAssets 50 Impact Investment Fund Manager Showcase for two consecutive years.
For more information, visit: https://deetkenimpact.com/ or follow on Twitter @DeetkenImpact