WIGTON Energy Limited and SunTerra Energy Jamaica Limited have been awarded the right to add up to 100 MW (megawatts) of solar energy to the national grid following their successful bid with Generation Procurement Entity (GPE).

The GPE made the disclosure on Friday which noted that Wigton Energy (formerly Wigton Windfarm Limited) would develop a 49.83 MW solar facility in Clarendon while SunTerra, listed as the main proposal in the GPE document, would develop a 50 MW solar facility in Trelawny. Wigton’s project, its first solar energy project, would be projected to produce an annual average of 102,509.28 MWh in energy with a levelised cost of US$64.66 per MwH, while SunTerra’s project would produce an annual average of 117,889.30 MWh in energy with a levelised cost of US$70.20. Jamaica Energy Partners and InterEnergy Renewables SL and Blue Mahoe Energy Company Limited, which proposed two other solar projects, were the other two non-pre-awarded bids announced in July.

“This project is a testament to the impact of the strategic shift Wigton Energy has undertaken to diversify into multiple forms of renewable energy, and not just wind. This solar installation not only demonstrates our leadership but also our dedication to securing a sustainable energy future for our children and future generations. We remain committed to driving the necessary shift towards incorporating more renewable energy sources in Jamaica’s energy mix and are excited to take on more projects and innovations that align with this vision,” said Wigton Chief Executive Officer (CEO) Gary Barrow in the JSE disclosure.

While the final selling price is yet to be determined with Jamaica Public Service Company Limited (JPS), the levelised cost for Wigton’s project translates to annual revenue of US$6.63 million while SunTerra’s project would generate annual revenue of US$8.28 million. While the percentage of Wigton’s project tariff tied to the US CPI (Consumer Price Index) would be 13 per cent, SunTerra’s project would be 100 per cent tied to the US CPI. Wigton’s project would have a capacity factor of 23.46 per cent while SunTerra’s project would have a capacity factor of 26.89 per cent. SunTerra was founded by former JPS CEO Emmanuel DaRosa who currently leads SunTerra as its CEO.

The next step following the successful bid will be GPE recommending the two entities’ projects to the Ministry of Science, Energy, Telecommunications and Transport (MSETT) for them to be granted licences to supply electricity and establish a renewable energy power purchase agreement (PPA) with JPS. Both entities would then finalise the respective leases for the land to be used for each solar project; obtain the necessary environmental permits from the relevant agencies; finalise financing arrangements; finalise the engineering, procurement and construction (EPC) contract, and develop each project. Wigton already has three PPA’s with JPS while SunTerra was not listed amongst the nine entities in JPS’s annual report as independent power providers.

The addition of these two projects would further move a greater portion of Jamaica’s energy production to renewables. According to MSETT, renewables made up 8.7 per cent of Jamaica’s energy mix in 2023, with solar making up six per cent of that figure while wind made up the rest. Jamaica had set an ambitious goal of 33 per cent of energy to be produced by renewables in 2030 and 50 per cent by 2037. GPE will be launching a new request for proposal (RFP) tender in the current financial year (April 2024 to March 2025) to add another 168 MW of renewable energy.

Wigton Energy made a subsequent disclosure to Jamaica Stock Exchange (JSE) that the minister of MSETT had approved its request to replace Wigton Phase I’s wind facility, with 20.7 MW, with a solar facility. That request came on the heels of Wigton being approved for a 20-year extension in September 2022 in relation to Wigton Phase I whose original licence expired in April 2024. The conversion from wind to power will reduce Wigton’s windfarm operations in Rose Hill, Manchester, to 42MW with 21 wind turbines, but would see it producing 70.53 MW of solar energy and thus make it the largest renewable energy facility in Jamaica, ahead of Paradise Park in Paradise, Westmoreland. Eight Rivers Energy Company Limited, operator of Paradise Park which has a 51.5 MWp installed capacity, is going up for sale as Neoen and MPC Caribbean Clean Energy Limited sell their interest in the business. This is set to be completed in the first quarter of 2025. Content Solar in Content, Clarendon, has an installed capacity of 28.5 MW.

The addition of solar power to Wigton’s operations will further diversify the mix of energy it produces and give it some buffer against the risks it faced recently with Hurricane Beryl, which shaved its second-quarter (July to September) revenue by a third after the weather event resulted in its energy production being cut by a third. Due to the expected business interruption insurance that Wigton had prior to Beryl, its operating profit for the second-quarter and six-month period exceeded the prior period.

Wigton’s asset base was $10.28 billion, with cash rising to $3.10 billion at the end of June. Its total liabilities and shareholders’ equity was $4.87 billion and $5.41 billion, respectively. The company’s stock price has surged nine per cent since Friday as it increased from $1.07 to $1.17 on Tuesday with a market capitalisation of $12.92 billion. It was the third most traded stock on Monday and hit an intraday high of $1.19 on Tuesday. This left Wigton up 47 per cent year to date.