ADDITIONAL funding has been secured for SunTerra’s largest solar venture through private equity funding building on its previous Inter-American Development Bank (IDB) investment.

The project, which is being led by Mscale LLC through the Caribbean Venture Capital Fund, has taken an 10 per cent equity stake in SunTerra Energy (Jamaica) Limited (SEJL) to develop the 50 megawatt solar park, which has 80-megawatt solar panels behind it. The project will be built in two phases and has the potential to reach 200 megawatts with battery storage and will be enough to supply roughly 12 per cent of Jamaica’s electricity needs.

“This project will supply 3-4 per cent of Jamaica’s energy needs at US$0.0599/kWh, while the most expensive generators it will replace cost about US$0.30/kWh. We will replace this capacity at roughly one-fifth of the cost,” revealed Ugo Ikemba, CEO of Mscale LLC. “It is reasonable to expect that this project will reduce Jamaica’s electricity operating costs by 1-2 per cent.”

The project will include 50 megawatts of alternating current (50 MW AC) connected to the national grid through a local special purpose vehicle (SPV) — a company established solely to finance, own, and operate the solar facility. Though it has the potential to reduce electricity costs, Ikemba noted that more projects like this are required to create a more substantial impact on electricity prices for consumers. The project carries a total price tag of US$56 million, of which US$43 million is being financed through a blended structure of debt from the IDB slated to be processed by February 2026. Phase one has already been awarded and is under development, with site clearing, road construction, and perimeter fencing to begin in December or January. Full construction is expected to start in February or March.

“Phase one is expected to be completed within 20 months after construction begins; therefore, we plan to be operational in Q4 2027,” Ikemba told the Jamaica Observer in an interview.

Phase one’s planned commissioning in late 2027 aligns with major changes coming to the national electricity sector. Energy Minister Daryl Vaz has announced that the Government will not automatically renew the Jamaica Public Service Company’s (JPS) all-island licence when it expires on July 8, 2027, insisting that any new licence must support greater competition, lower costs, and a greener grid. If negotiations fail, the Government has also signalled its readiness to acquire JPS’s assets. Ikemba noted that these shifts, combined with the vulnerabilities exposed by Hurricane Melissa, have made investments like SunTerra’s even more urgent. Phase two of the project will depend on government approval, but SunTerra is ready to move ahead as soon as the go-ahead is given. The development will create both construction and long-term operations jobs, with as many as 600 Jamaicans expected to be employed during the build-out and up to 15 permanent roles once the solar farm is operational.

“We have a Jamaica-first and Caribbean-wide vision,” Ikemba said. “We are already seeing many excellent promoters with high-return, high-impact opportunities across Caricom and the Dominican Republic. Our pipeline is strong and growing daily because we are on the ground in these markets, working through partnerships from our headquarters in Kingston. We select only the highest-quality promoters. Our rule is: ‘First who, then what.’”

SunTerra Energy is a renewable energy company advancing sustainable power solutions across the Caribbean. It focuses on integrating clean technologies, improving energy efficiency, and supporting climate-resilience goals through innovation, partnerships, and community-driven development.

Jamaica is ramping up renewable energy solutions, including the forthcoming SunTerra solar farm in Trelawny, to strengthen the national grid following Hurricane Melissa’s impact.