El Salvador solar sale: Assets Sold as MPC Energy Solutions Shifts LatAm Strategy
MPC Energy Solutions (MPCES) has announced a significant strategic move with the divestment of its solar power assets in El Salvador and Guatemala. This sale, codenamed “Project Merlin,” marks a pivotal step in the company’s re-evaluation of its Latin American portfolio, signaling a shift to unlock shareholder value and streamline regional operations.
The Details of the El Salvador solar sale
At the core of the transaction is the sale of the Santa Rosa & Villa Sol solar projects in El Salvador, along with the San Patricio project in Guatemala. These assets have a combined capacity of 87.4 MWp. The deal, which has already secured shareholder approval, is on track to close in the second quarter of 2026.
Financially, the sale is expected to generate approximately USD 27 million in equity proceeds for MPCES. In a move to directly benefit its investors, the company has stated its intention to distribute a significant portion of these proceeds, combined with existing free cash reserves, to its shareholders. The formal resolutions for this distribution are scheduled to be presented at the Annual General Meeting on May 18, 2026.
While most conditions for the sale are advancing smoothly, the company has noted minor delays related to pending permits in Guatemala.
A Broader Strategic Shift in Latin America after El Salvador solar sale
This divestment is more than just a single transaction; it is a clear indicator of MPC Energy Solutions’ evolving strategy in Latin America. Following the successful closing of this deal, the company is reportedly considering the divestment of its remaining power assets in the region.
This move suggests a strategic consolidation, allowing MPCES to focus its resources and management attention. The company’s remaining portfolio in the region includes the Los Girasoles project in Colombia, Los Santos in Mexico, and the La Perla development project, which is also located in El Salvador.
Despite the strategic shift, the company’s operational performance remains solid. For the full year 2025, total energy production from its asset base reached 113 GWh, demonstrating the reliability and stability of its ongoing operations.
Financial Health and Future Outlook after El Salvador solar sale
A look at the company’s preliminary, unaudited financials for 2025 provides context for this strategic realignment. MPCES reported total assets of USD 127.7 million, with an equity ratio of 33%. The company holds USD 73.2 million in project debt and has a consolidated cash position of USD 13.9 million.
By selling these Central American assets, MPC Energy Solutions is unlocking capital and simplifying its corporate structure. The move allows the company to return value to shareholders while concentrating on a more focused portfolio. For investors and market watchers, this signals a deliberate and calculated pivot towards optimizing assets and maximizing returns in a dynamic energy market.
