WIGTON Windfarm Limited is exploring the Caribbean for potential opportunities to expand its renewable energy business as it seeks to diversify its operations.

Wigton listed on the Jamaica Stock Exchange (JSE) in May 2019 as an independent company with three windfarms and a renewable energy training lab at its Rose Hill, Manchester head office and has sought to expand its business as a company owned directly by the Jamaican people. So far it has entered into a joint venture arrangement with Innovative Energy Company DBA IEC SPEI Limited; purchased a 1.08-acre property at Ferry Pen, St Andrew; and has a 20 per cent equity stake in start-up Flash Holdings Limited.

“We are looking at regional countries, mainly in the Caricom body. We are a little shy of getting into Latin America but we are not ruling it out. We are a growing business, and we will go where there is profitable business we can do with good countries,” said Managing Director Earlington Barrett at the virtual annual general meeting (AGM) held on Friday.

The company has mentioned at prior shareholder meetings the possibility of farming castor oil on some of the leased land in Manchester as well as considering diversifying into the rest of the region. This comes against the constraint of Wigton losing a bid for Generation Procurement Entity (GPE) in 2015 to bring a fourth windfarm, or Phase IV, into operation. Under The Electricity Act 2015, independent power producers (IPP) such as Wigton must win a bid to develop their renewable energy facility, whose power will be eventually sold to the Jamaica Public Service Company Limited (JPS). Thus, they’re limited in developing new solutions and only have a 62.7-megawatt (MW) power capacity.

While Barrett mentioned the plan to introduce robotics to its training lab, which offers City & Guilds certification, he mentioned Wigton’s prior attempt to expand into the region through Guyana, prior to their oil discovery in May 2015. He mentioned that they were the preferred bidder for a 40-MW plant composed of 10MW for fossil fuel and 30MW for renewable energy. However, that opportunity fell through due to a change of Government.

“We have not given up on Guyana. We have looked at a number of other opportunities that have come to the table and we seek to still get into that business because all the rest of the world is trying to get into Guyana with their newfound wealth,” Barrett mentioned with exuberance.

MPC Caribbean Clean Energy Limited (MPCCEL), another JSE-listed company, was able to enter into a joint venture with Trinidadian conglomerate Ansa McAl Limited to operate a 21MWp wind farm in Costa Rica in mid-2019. MPCCEL has a fraction of the capital of Wigton but has been able to enter numerous projects across the Caribbean in the last decade.

The Wigton head even mentioned that while it is known that wind power carries greater production potential than solar power, there are limitations due to the land and geographical needs required for a wind turbine installation, along with the energy grid capacity and distribution capabilities. Barrett noted that some of the best areas in Jamaica for optimal winds, which would equate to 40 per cent higher power production, are in protected forest areas.

Thus, Wigton is moving ahead on the Wigton-IEC Joint Venture, which is providing positive returns. The partnership is currently working on a distributed solar power production project at agricultural locations in Essex Valley, and is set to begin working on a photovoltaic installation at Sangster International Airport in the new financial year.

When asked what the status on the Ferry property is, Barrett responded, “The investigation of that [Ferry Pen] has continued so we now have a team of realtors, developers. Some of the best minds in that business in the country have the task now of giving some guidance to management and the board on the best use of that land. It is actively being pursued and discussed at almost every board meeting, and certainly the financial investment committee meetings.”

Although Barrett wasn’t able to disclose Wigton’s bid size on the GPE’s 100MW renewable energy request for proposal, he noted that no participant would be able to bid for more than 50MW and that the company was on track to submit its bid before the April 5 deadline. Also, he mentioned that Wigton has been shortlisted for JPS’s tender for the development of three renewable energy plants totalling 300MW. The successful bidders will be revealed at the end of 2024.

Wigton’s stock price closed unchanged on Friday at $1.10, which leaves it up 39 per cent in 2024 with a market capitalisation of $12.10 billion. The significant jump in Wigton’s share price has seen two directors sell nine million shares in February as many persons anticipate the expiration of the 10 per cent share cap. Wigton’s company secretary noted that the cap expires on April 17.

Finance executives such as Sabrina Cooper, CEO of Scotia Investments Jamaica, and Dwight Jackson, vice-president at VM Wealth, were present during the meeting as numerous managed funds and entities gear up to take a significant stake in Wigton within the coming weeks.

Wigton was able to benefit from Finance Minister Dr Nigel Clarke’s recent budget presentation which has restored their tax rate to 25 per cent and will see a reversal in the 33 1/3 tax rate they were charged last year. Barrett mentioned that Wigton would eventually consider a name change as it continues to diversify itself. Wigton Chairman Dennis Chung noted that he hopes the next AGM will be held in a hybrid format.

At the end of the AGM, Director Omar Azan, who chairs Wigton’s nominations, compensation and human resources committee, announced that Barrett would be demitting his role on March 31 and that Michelle Chin Lenn, Wigton’s head of energy, would become acting managing director on April 1. Barrett has worked with Wigton for 14 years while Chin Lenn has been working with the firm for 17 years. As a result of the change, Chin Lenn would become part of the company’s board of directors until the permanent appointment takes place.

“Hats off to you and cheers to you, Mr Barrett. As we bid farewell to Mr Barrett we also embrace a new interim leadership under the guidance of Miss Michelle Chin Lenn who will serve as acting managing director. We look forward to her contributions and leadership in continuing to drive Wigton’s success in the renewable energy sector,” Azan closed.