Wigton Windfarm Limited has received approval from Cabinet for a 20-year electricity generation licence, which will take effect April 2023.

In a notice on the Jamaica Stock Exchange website, Wigton disclosed that the licence, which was granted by the Minister of Science, Energy and Technology Daryl Vaz on behalf of Cabinet, will enable its continuation of the generating capacity through Phase I of its operations.

Commissioned in 2004 for a total contractual and licence period of 20 years, Wigton Phase I has a generating capacity of 20.7 megawatts. That licence will, however, expire in 2024.

As such Wigton requested the granting of another licence under the Electricity Act, 2015 to continue operations beyond 2024 from the minister of energy.

“While the approval of Cabinet represents a critical step in the continuation of the operations of Wigton Phase I, Wigton must now negotiate with other key stakeholders, to include its suppliers, financiers, its sole customer and the regulator, in order to determine the final cost of equipment, overall project financial viability, applicable tariff, agreed to terms and conditions of sale of the capacity generated and ultimately, a decision as to whether to commission a renewed Wigton Phase I,” the notice read.

Prior to this, Wigton’s directors had informed shareholders in a report attached to financials for the first quarter of 2022 that the company “is aggressively exploring business opportunities and partnerships” as it seeks to implement its diversification plan.

“While the company is geared towards diversification in non-traditional areas of energy, discussions are ongoing with the relevant regulatory authorities around the timing of the next request for proposal (RFP) for the addition of new renewable energy (RE) generation to the national grid,” the directors further outlined.

In its first-quarter results for June 30, 2022, Wigton’s revenue jumped 17.3 per cent or by $115.7 million to $785.3 million on the back of improved production of energy. Total expenses of $456.96 million represented a 6.8 per cent reduction relative to the same period in 2021.

As a result, the company recorded operating profit of $439.83 million. Deducting the net loss of an associate company, Wigton’s arrived a net profit after tax of $249.5 million.