A loan of $64 million was awarded by French development bank Proparco and Dutch peer FMO. The facility will deliver electricity to the Jamaica Public Service Company Limited at a price of $85/MWh over 20 years.
Proparco and FMO will provide the senior debt for the 51 MWp solar PV park in Jamaica, majority owned by Neoen alongside Rekamniar Frontier Ventures and MPC Caribbean Clean Energy Fund.
The project will be commissioned in the first half of 2019, having won a tender launched by the Jamaican Office of Utilities Regulation (OUR). IPP Neoen is the majority shareholder. The company announced the signing of the project financing with Proparco (France’s development bank) and FMO providing the senior debt for the project, with a total investment amounting to $64 million. Paradise Park will deliver to Jamaica Public Service Company Limited the cheapest electrical energy ever made available in Jamaica – with a tariff of $85/MWh – through a 20-year power purchase agreement.
“This project shows how a combination of investment in an emerging country, cutting edge technology implemented by first class international contractors and a strong governmental and grid operator support, with a large environmental and social component, can generate value by offering the most competitively priced electricity to the grid” said Xavier Barbaro, CEO of Neoen. “Jamaica and the Caribbean in general are blessed with renewable energy resources, and the Group is therefore very active in terms of development in the area.”
Angella Rainford, Managing Director of Rekamniar Frontier Ventures, added that the project could not have been possible without the invaluable support received from Jamaica’s government, local agencies and the neighboring community.
Credit: Robin Whitlock, Renewable Energy Magazine