Urbasolar Sells Dominican Solar Project to Akuo Energy

• Urbasolar hands over major solar project in Santo Domingo to Akuo Energy, securing a sustainable future with a 50 MW capacity and a 30-year concession.

Urbasolar has received regulatory approval from the Dominican power regulator, SIE, to transfer its solar development project to Akuo Energy. The transfer involves the full acquisition of 3,000 shares in Energia Solar del Este Cabreto I SAS, which holds a 30-year concession to construct and operate the Este Cabreto I solar photovoltaic plant, with a capacity of 50 MW, in Santo Domingo. The concession was awarded to Urbasolar in November 2021, following a power purchase agreement with local distributor EDEESTE.

Akuo Energy is set to take over Urbasolar's responsibilities as the project concessionaire without affecting market competition, as determined by the SIE. The approval for the acquisition, sought by Energia Solar del Este Cabreto I SAS in March 2024, indicates Akuo's readiness to fulfill the project's requirements. While Urbasolar planned to begin construction in 2023, it remains unclear if those plans were executed successfully.

What implications does Akuo Energy's acquisition have for the Este Cabreto I solar project?

The acquisition of Urbasolar's interest in the Este Cabreto I solar project by Akuo Energy carries several implications for the future of the development and operation of the solar facility. Here are some key points to consider:

- Continuity of Project Development: Akuo Energy’s acquisition ensures a seamless transition in project management, potentially minimizing delays and maintaining momentum for the construction and operation of the Este Cabreto I solar project.

- Increased Investment and Resources: Akuo Energy, being an established player in the renewable energy sector, may bring additional resources, funding, and expertise to the project that could enhance the project's viability and accelerate its timeline.

- Market Confidence: The acquisition may bolster investor confidence in the Este Cabreto I project, as Akuo Energy’s reputation may attract more financial interest and partnerships, facilitating further investment into renewable energy initiatives in the Dominican Republic.

- Regulatory Compliance and Expertise: As a reputable company, Akuo Energy is likely to have substantial experience with regulatory processes, which can ensure that the Este Cabreto I project adheres to local and international guidelines, minimizing the risk of compliance issues that could arise during construction and operation.

- Operational Efficiency: Akuo Energy’s existing knowledge and operational strategies may lead to improved efficiency throughout the project lifecycle, from construction through to ongoing management and maintenance once the solar plant is operational.

- Potential for Expanded Capacity: With Akuo Energy's background in renewable energy projects, there may be opportunities to expand the capacity of the Este Cabreto I solar plant in the future, increasing its output and contribution to the local energy grid.

- Contributions to Local Economy: The progression of the Este Cabreto I project under Akuo Energy could positively impact the local economy by creating jobs during the construction phase, as well as providing ongoing employment opportunities once the plant is operational.

- Aligning with National Energy Goals: Akuo Energy’s involvement supports the Dominican Republic’s goals for increasing renewable energy production, aligning with national policies aimed at reducing reliance on fossil fuels and enhancing energy security.

- Community Engagement Initiatives: Akuo Energy may initiate community engagement programs aimed at educating local populations about renewable energy and the benefits of solar power, fostering community support for the project.

- Potential Technological Advancements: The company might also introduce innovative technologies or approaches that enhance the efficiency and performance of the solar plant, thereby increasing overall energy output.

In summary, Akuo Energy's acquisition could lead to a more robust and expedited development of the Este Cabreto I solar project, leveraging its resources and expertise to foster a sustainable energy future in the Dominican Republic.