Duralita de Centroamerica and Ectropa inaugurate a 98 kW solar power plant in El Salvador

Consortium Centro America Abogados acted as counsel to Ectropa for the beginning of its operations in El Salvador in the year 2012. After several months in the local market, the company began negotiations with Duralita de Centroamerica, a leading company dedicated to the fabrication of roofs and other construction materials in Central America, to participate in the program known as “develoPPP”. This program was setup by the German Federal Ministry for Economic Cooperation and Development (BMZ) to foster the involvement of the private sector at the point where business opportunities and development policy initiatives intersect.

After receiving the collaboration of GIZ, and the direct participation of the German company SOLERA GmbH, in charge of transferring its technology and knowledge of solar power energy generation, and the local participation of ITCA-FEPADE, a technology educational institute, Ectropa and Duralita de Centroamerica finally inaugurated a 98 kW solar power plant in El Salvador. The solar power plant was installed in the premises of DURALITA’s factory in the city of Lourdes, Colón, specifically on its roof. 

The plant will provide approximately 40% of the energy required by the factory to operate, and will have a positive impact in the costs of the operation. The power plant is also able to provide energy to the public network, in the cases in which the energy is not consumed by the factory. The distribution company Del Sur will acquire all excess of the generated energy. 

The Firm counseled Ectropa in the elaboration of the Long Term Power Purchase Agreement, and other legal issues related to the transaction. 

 “This transaction sets the possibilities for other private companies to join efforts to participate in the generation of renewable energy in El Salvador” indicated Diego Martín Menjívar, the partner in charge of counseling the client.