Jamaica, February 17, 2022 – Following an equity investment in Soléco Energy in 2021, Impact asset manager Deetken Impact Sustainable Energy (DISE) joins Soléco Energy in celebrating the closing of a financing of US$24.3 million from the IDB Invest, the private sector arm of the Interamerican Development Bank. They will provide up to US$13.3 million in Senior A Loan financing and mobilize up to US$11.0 million from blended finance sources (the Clean Technology Fund). This financing contributes to the development of photovoltaic solar generation in Jamaica; ensuring the completion of an initial set of solar photovoltaic plants, while providing access to financing for the deployment of subsequent installations, thus shaping a potential portfolio of up to 26MW of new distributed solar generation capacity.
Deetken Impact is excited to be part of the experienced, multidisciplinary team that is developing a business model that is expected to be a catalyst in replicating similar models in surrounding countries in Central America & the Caribbean that experience similar challenges as those of Jamaica, diversifying the region’s energy matrix. Given that Jamaica’s current energy mix is over 80% oil-sourced, renewable projects here have an even higher climate impact, greatly reducing the carbon footprint of our client’s operations. Furthermore, this project incentivizes concrete outcomes in gender, diversity, and inclusion, since a share of the workers trained and employed in semi-technical tasks are women, and contractors will take the Women’s Empowerment Principles tool assessment.
This investment is expected to contribute to five United Nation’s Sustainable Development Goals (SDGs): Affordable and clean energy (SDG 7), Decent work and economic growth (SDG 8), Industry, innovation and infrastructure (SDG 9), Climate action (SDG 13) and Partnerships for the goals (SDG 17).
“Through this deal, IDB Invest reinforces its commitment to promoting sustainable infrastructure within the Caribbean region, together with Soléco Energy. The financing strengthens the expansion of renewable energy generation in Jamaica and incorporates concrete outcomes in gender, diversity, and inclusion that will contribute to inclusive and sustainable growth in the country” commented James Scriven, CEO of IDB Invest.
Fernando Alvarado, DISE’s CEO welcomes IDB Invest’s participation in Soléco Energy: “We celebrate the approval of the IDB Invest loan and the co-financing from the Canadian Clean Technology Fund, which is a confirmation of the solid business proposition that Soléco Energy brings to the Caribbean Commercial and Industrial sectors by offering solar PV energy solutions at competitive price while contributing to the renewable energy transition, COVID-19 economic recovery and the resiliency of Caribbean island countries. Moreover, we are thrilled to be supporting a company led by an empowered native Jamaican female entrepreneur that should be an inspiration for hopefully many more women already active or considering developing a career in the sustainable energy sector.”
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 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.
About Soléco Energy
Soléco Energy was created to fill a gap in the Caribbean markets for a one-stop solution of solar and storage systems for large commercial and industrial clients. The company aims to lead the transition to a sustainable energy future through distributed generation. Soléco delivers and finances turn-key renewable solutions that help customers reduce their energy consumption and cost. The company believes that the future of business energy in the region is “decentralized, digitized and decarbonized”.
Soléco Energy focuses on the distributed generation market, while its sister company Rekamniar Frontier Ventures, develops utility scale projects in the region. Rekamniar developed the largest solar plant in Jamaica in partnership with French power producer Neoen. Together they successfully commissioned a 51MWp solar plant in Paradise Park, Jamaica.
For more information, visit: https://deetkenimpact.com/ or follow us on LinkedIn @DeetkenImpact
