Eight Rivers Energy Company Limited, the company which owns the 51.5 MWp solar PV plant in Paradise Park, Westmoreland, Jamaica, is going up for sale, with MPC Caribbean Clean Energy Limited (MPCCEL), a company listed on Jamaica Stock Exchange (JSE), to sell its interest in the renewable energy asset.

This was announced by MPCCEL on Wednesday, which confirmed that it would be selling its interest in the company and that this transaction should be completed in the first quarter (January to March) of 2025. The solar park was also dubbed Paradise Park and generated 82,486,750 kWh of power in 2023 at a cost of US$0.095 per kWh according to MPCCEL’s 2023 annual report. It began operations in June 2019 under a 20-year power purchase agreement (PPA) with the Jamaica Public Service Company Limited (JPS).

“The majority shareholder issued a notice of intention to proceed with a third-party sale process in respect of their shareholding in the project. Therefore, after receiving the final binding offer along with the notice related to tag-along right, the board of directors of MPC Caribbean Clean Energy Limited approved to exercise its tag-along rights to participate in the sale,” the MPCCEL disclosure stated.

Erec Investment Limited, a Barbadian International Business Company (IBC), owns 49.99 per cent of Eight Rivers, while Neoen Holdings Jamaica, a French company and subsidiary of Neon, owns the 50.01 per cent stake in Eight Rivers. Following a recent reorganisation between MPCCEL and the Cayman Islands-based MPC Caribbean Clean Energy Fund LLC, MPCCEL is the direct owner of a 68.8 per cent stake in Erec Investment. It was previously reported that Rekamniar Capital Limited, a related United Kingdom (UK) company to the Angella Rainford-founded Rekamniar Frontier Ventures, was a shareholder in Eight Rivers. Rainford was involved in the conceptualisation and creation of Paradise Park.

While the new owner of Eight Rivers is not yet known, details around the company can be gleaned from its Companies Office of Jamaica filings. Paradise Park was developed at a cost of US$64 million and received US$48.5 million in project financing from PROPARCO, a French development financial institution, along with FMO, the Dutch development bank.

The February 2019 annual return revealed that Eight Rivers had US$47.385 million in indebtedness, which had decreased to US$38.57 million as of February 2024. Based on its energy produced in 2023, Paradise Park would have generated an estimated US$7.84 million in revenue for the period. The performance ratio was also 75.60 per cent during 2023, which meant that it generated 75 per cent of renewable energy relative to the theoretical maximum output in the period. The accumulated irradiation during 2023 was 2,074.41 kWh/m2.

Paradise Park is also the largest photovoltaic or solar energy producer in Jamaica ahead of Content Solar in Content, Clarendon, which has an installed capacity of 28.5 MW. If the Generation Procurement Entity (GPE) approves the two current bids as final, Wigton Energy Limited (formerly Wigton Windfarm Limited) and SunTerra Energy Jamaica Limited would construct solar farms with 49.83 MW and 50MW, respectively, of installed capacity.

With the sale of Paradise Park, MPCCEL would no longer have any renewable energy assets in Jamaica. It would continue to benefit from the 21MW Tilawind Wind Farm in Guanacaste, Costa Rica; the 6.4 MWp solar park in San Isidro, El Salvador, and the 33.3894 MW phase one of Monte Plata, Dominican Republic, and the 40.5 MW phase two of Monte Plata.

MPCCEL’s third quarter unaudited report is due for submission by November 14. The company previously held all its renewable energy investments through MPC Caribbean Clean Energy Fund LLC, in which it held an 85.69 per cent stake. However, following the completion of the structural reorganisation on September 25, MPCCEL now directly owns all of its renewable energy investments. A consequence of this reorganisation is the issuance of 5,278,319 additional class B shares at a cost of US$0.877 per share to MPC CCEF Participation GmbH, a nominee company beneficially owned by MPC Capital AG. This increased MPC Capital AG’s interest to 5,970,140 class B shares with 22.16 per cent of the issued class B shares.

According to a release on the Trinidad and Tobago Stock Exchange (TTSE), those additional shares were listed on its stock market on November 7 and became effective on November 8. As a result, the issued share count moved from 21,666,542 class B shares to 26,944,861 class B shares. The increased shares are also reflected on the Jamaica Stock Exchange (JSE).

While the company has yet to disclose what it would do with the proceeds from the sale of Paradise Park, the company could consider its second dividend after last paying a US$1.93 million dividend in September 2019.

MPCCEL closed Thursday at $84.30, which leaves the Jamaican dollar security down six per cent in 2024, while the United States dollar security ended Thursday at US$0.6097, which leaves it up seven per cent year to date. Neoen ended Thursday at €39.41, which leaves it up 35 per cent year to date with a €6.02 billion market capitalisation.

The regulatory approvals for the acquisition of a 53.12 per cent stake in Neoen by Brookfield Renewable Partners and Singapore’s Temasek Holdings continues to proceed as normal. Neoen will have to dispose of its renewable energy assets in Victoria, Australia, which consists of 652 MW of assets in operation and 2.8 GW of projects in development. The deal is set to be completed by the end of 2024, with the public tender to other shareholders to take place in 2025. Neoen is being acquired for €39.85 , which was a 27 per cent premium to its May 29 closing price.