WIGTON Energy has taken its concerns about delays in finalising a power purchase agreement with Jamaica Public Service Company (JPS) to the energy minister, as unresolved terms hold up financing for more than 70 megawatts of planned solar generation.

The company is aiming to break ground within six months, but told shareholders at its annual general meeting that it would not compromise their interests to get the agreement signed. The solar developments form part of a wider expansion programme under which Wigton expects to spend at least $8 billion over the next two years.

The BusinessWeek reported in October 2025 that the power purchase agreement (PPA) had been completed with JPS and submitted to the Office of Utilities Regulation, (OUR) for review. A year later, Theoc says terms remain unresolved.

“We have recently met with JPS, met with the OUR and written to the minister of energy to express our concerns about how slow the process is moving. And this is not just for Wigton alone,” Wigton Energy chairman Dan Theoc told shareholders during the question-and-answer session.

“What we want to do is get that PPA executed in short order, move on to secure the financing, and then move on to construct the actual assets. And it has to happen in that order.”

Asked whether the delay effectively left the projects at a standstill, Theoc replied, “We cannot secure financing without an executed power purchase agreement.”

Wigton has leased land for the two solar developments, described at the meeting as approximately 50 megawatts and 20 megawatts. Its September interim report puts their combined capacity at 70.53 megawatts, more than the 62.7 megawatts of wind generation it currently operates.

THEOC…We have recently met with JPS, met with the OUR (Office of Utilities Regulation), and written to the minister of energy to express our concerns about how slow the process is moving (Photo: Karl Mclarty)

JPS would purchase the electricity under a proposed 20-year agreement, but the terms must first be acceptable to Wigton and the lenders expected to finance construction.

Chief Executive Officer Gary Barrow acknowledged the difficulty during his presentation, saying negotiations had taken longer than anticipated.

“There are a few problematic provisions that we are working through, as we have to be sure that we represent the best interests of you, our shareholders,” Barrow said.

“And we will not expedite and compromise, notwithstanding we are aiming to break ground within the next six months.”

The provisions in dispute were not identified at the meeting. Theoc said the negotiations involve Wigton and JPS, with the OUR also participating.

“What we’re experiencing is a difficulty in finalising that PPA, which may or may not be related to the fact that JPS itself is going through a very dynamic time,” shareholders were told.

Wigton said it understood that the other successful bidder in the procurement round was similarly awaiting an agreement that would allow it to proceed with financing.

The company approaches the planned expansion with $3.26 billion in cash and cash equivalents at September 30, after fully repaying its Bond A obligation during the month. Total liabilities were down 23.7 per cent from a year earlier to $3.03 billion, while shareholders’ equity stood at $5.81 billion.

A section of Wigton Energy’s wind farm. The company plans to add 70.53 megawatts of solar capacity, but delays in finalising a power purchase agreement with JPS are holding up financing.

Management pointed to the investment programme when shareholders questioned the cash being held by the business.

“I see a future where in the next two to three years we will have doubled the size of the company and spent more than $8 billion in capital expenditure,” shareholders were told.

“So before the questions come about why are we sitting down on this $3 billion of cash, let me let you know right now that we plan to spend about $8 billion in the next two years. So we need that cash to help us grow the business.”

Wigton is also negotiating terms for its remaining Bond B, which has a principal balance of approximately $1.9 billion. Management said those discussions were advanced. The obligation falls due within the next 12 months, according to the September report.

Debt repayments have already reduced the cost of borrowing. Finance expenses fell 47.2 per cent to $81.2 million for the six months ended September, helping to cushion higher operating costs and a fall in other income.

The existing wind business is producing more electricity, although the improvement has not yet translated into higher profit across the full half-year.

Production rose 16.6 per cent to 94.7 million kilowatt-hours, supported by favourable wind conditions and spending on plant maintenance and repairs. Electricity sales increased 13.6 per cent to $1.51 billion.

Net profit, however, declined 11.5 per cent to $313.6 million from $354.5 million. Other income fell to $71.3 million from $210.1 million, largely because of lower insurance proceeds and foreign exchange gains. Repairs following the hurricanes of 2024 and 2025 also contributed to higher costs, while administrative spending increased as Wigton invested in staff and technology.

The July-to-September quarter showed an improvement. Net profit rose 51.8 per cent to $144.6 million, with electricity sales up 42.6 per cent to $726.5 million.

The expansion plans extend beyond the solar developments awaiting the JPS agreement. Wigton is in advanced negotiations for a solar project with a major Jamaican industrial company, part of its effort to build a business supplying commercial and industrial customers.

Management did not identify the prospective client or disclose the size of that individual project, but said the wider pipeline included 10 megawatts of capacity it could execute over the next two to three years.

Wigton is also pursuing business elsewhere in the Caribbean, with its September report confirming that it has been shortlisted to participate in upcoming regional requests for proposals. The company did not identify the markets or disclose the potential size of those projects.

Barrow said the regional expansion would involve strategic partners as Wigton broadens its energy portfolio and reduces its dependence on a single market.

“Our ultimate ambition is definitive and unwavering. Wigton will become the largest renewable energy powerhouse in the Caribbean,” he told shareholders.