news - FMO and Proparco provide senior debt for farm based solar park in Jamaica

In the first half of 2019, a new 51 MWp solar park is expected to be commissioned in Jamaica. Paradise Park PV will deliver the cheapest electrical energy available in Jamaica - with a tariff of USD 85/MWh - through a 20-year power purchase agreement. Together with Proparco (France’s development bank) FMO will provide a debt package for the project, which has a total investment amount of USD 64 million. 

Currently, Jamaica’s energy system is highly dependent on imported fossil fuels; petroleum imports account for over 90 percent of electricity production. This oil import dependency comes at a high cost. Electricity prices for Jamaica’s people have also shot up dramatically in recent years, reaching a high of US$0.42 per kWh. Consequently, Jamaica is charting a new path to energy security based on domestic renewable energy sources to build an energy system that is socially, economically, and environmentally sustainable. The new solar park Paradise Park PV will be critical to the diversity of Jamaica’s energy mix and reduce its dependency on fuel. 

Ewout van der Molen, Manager Energy Latin America Caribbean at FMO, stated: “We feel honoured to be part of the Paradise Park endeavour, a first renewable energy investment of this scale in Jamaica. It is an excellent fit with FMO’s strategy, which is to empower private entities in countries like Jamaica to increase the supply of renewable energy.”

FMO is involved in the debt package for the project that is majority-owned by Neoen alsongside Rekamniar Frontier Ventures and MPC Caribbean Clean Energy Fund. Xavier Barbaro, CEO of Neoen stated: “This project has a large environmental and social component, and can generate value by offering the most competitively priced electricity to the grid. Jamaica and the Caribbean in general are blessed with renewable energy resources, and the Group is therefore very active in terms of development in the area."