Update on Upower in Honduras
Background: On January 16th, 2014 U.S. based developer Upower/Upower Honduras signed and executed two (2) 50 MW PPA’s, totaling 100 MW in solar photovolatic (PV) projects to construct and produce renewable energy to power the Grid of the Empresa Nacional de Energia Electrica, the Honduran National Electric Company.
On January 23rd, 2014 the Honduran Congress ratified and approved the 2 PPA’s and we, Upower Honduras, subsidiary of Upower, Inc. of the United States, provided 2 Sovereign Bank Guarantees totaling $4.35mm as the developer of the 100 MW projects.
With the execution of our signed 100 MW PPA’s of $0.17.5 cents per KWh for 20 years, the side-by-side projects, PSA for 50 MW and PRODERSSA for 50 MW, became the largest operating Solar Plant in Honduras and throughout the entire Latin American region.
After being granted the contracts for the Projects, we invested millions on this process, completed the Feasibility Studies, while starting the Environmental Impact Assessments (EIA), Topographical and Geographical Studies.
Upower Honduras Secured a long-term lease agreement in Nacaome, Honduras, located in the Valle Department (Western Region of Country) for hundreds of acres to develop and construct the 2 projects.
Unfortunately, due to some well publicized, unfavorable Honduran news, expressing a High Country Risk and Credit Risk, alongside safety and socio-economic concerns expressed by our financial institutional partners at the time, we experienced unexpected delays in the decision-making process of our financial commitments, potentially delaying and effecting the anticipated incentives for completing the construction in time.
The Upower Board concluded it was in the best interest of Shareholders and the Country of Honduras to mitigate risks and more importantly, quicken the development process in Honduras of these important projects due to time constraints specified in the Project PPA’s Incentives and Bonuses. It was decided as of July 4th, 2014 that as developers of the two 50 megawatt solar powered power plant PPA’s with the Empresa Nacional de Energia Electrica (“ENEE”), that we would transfer and complete the projects within 10 months through associated interested parties of Upower Honduras, Inc.’s Directors and Local Partners, namely FinnFund and the Larach Group, with the help of The World Bank’s International Finance Group.
The 2 Upower Honduras project names of PSA and PRODERSSA were changed and the sites were developed by a group of private investors from Solar Power Sociedad Anónima (SOPOSA) for the Nacaome site and Compañía de Energía Solar Sociedad Anónima (COHESSA) for the Valle site. They were built in just 10 months on 974 acres of land at a cost of US$232MM with the help of institutions providing financing, including the World Bank’s International Finance Group and Finnfund. With the inauguration on Wednesday, May 6th, 2015 by the President of Honduras, the largest solar power project in Latin American history, and the most efficient worldwide, came online and producing power. In the end, Upower’s vision of roughly 2,500 direct and indirect jobs were created. The facility now has about 150 permanent employees for operation and maintenance. Our project now generates 120 gigawatts of electricity annually for approximately 152,000 Honduran households. Honduras major dependence on fossil fuels is no more.
Upower Honduras Project is Completed.
3rd Party Proof of Prior Projects:
Map of Projects:
About Upower’s New Developments Worldwide
To Focus on Countries with better Credit Risks and Country Risks, Upower has refocused its efforts on Countries like The Bahamas, Chile, Mexico, South Africa, and others. Upower, Inc. and/or its subsidiaries and affiliates, including Upower Bahamas and Upower Chile, are all currently in Negotiations for several potential Solar Projects in the Countries of:
The Bahamas. Represented by Attorneys Davis & Co., Upower Bahamas in talks with The Office of The Prime Minister, seeking several Solar Plants, both Utility Scale and using our Proprietary Micro-Grid Technology, in addition to a Waste-To-Energy (WtE) opportunities in several site locations to power a large percentage of Nassau, New Providence, Bahamas. Affiliate Upower Bahamas is aggressively pursuing several customized, Proprietary Micro-Grid Projects, potentially generating tens of megawatts (MW) of solar power plant(s) throughout the “Family Islands” of the Bahamas in the 20 Island Challenge, namely Andros, Eleuthera, Exuma, Grand Bahama, and Great Abaco via the Bahamian Government and its agencies, including the Bahamas Electricity Corporation (BEC), through our local Bahamian partners , while simultaneously securing the financings. A cost analysis and feasibility report has been completed and submited to the Bahamian government and its agencies via The Bahamian Investment Authority (BIA) of some of these locations. The first 2 of 3 anticipated multi-million dollar projects currently under negotiations to secure is the National Sports Stadium Complex in Nassau as well as the Nassau International Airport (LPIA). We are also proposing a large-scale 100-200 megawatt solar PV project along a 2-mile length distance along the electrical lines located in the inner west side of the island, near the LPIA.
Pictured Above: Local Partners of Upower Bahamas Mr. Forbes & Mr. Collie, Jorge Aizcorbe, Honourable Deputy Prime Minister Philip Davis, Honourable Minister of Energy, Housing, and Environment Kenred Dorsett.
Pictured Above: David Macias, Local Partners of Upower Bahamas Mr. Forbes & Mr. Collie, Jorge Aizcorbe, and Philip McKenzie, Senior Managing Partner of Davis & Co.
Special Notice: As recent as April 2015, the Bahamas began its Residential Energy Self-Generation Programme (RESG) allowing for renewable energy systems to be tied into BEC’s electricity grid with incentives and credits. Currently, the “Family Islands” are being subsidized to great degree, somewhere between 20 and 30 cents per kilowatt hour (KWh), and their goal is to get it under the subsidized rate it the low 20’s to high teens per KWh.
Chile. In the Republic of Chile, Upower and Upower Chile, are in negotiations to potentially develop one or more Solar Projects with several Financial Sponsors as Partners in the 2 primary regions of the Country’s 4 National Grids, but primarily in the CDEC-SIC and the CDEC-SING. Our focus in Chile is in Government Approved Projects that include already approved Land, Permits, Environmental Impact Assessments, Topographical Surveys, Geographical Studies, with many other reports already completed. Upower has access to, and has received LOI’s (Letters Of Intent) and PPA’s (Power Purchase Agreements) from numerous interested parties looking to purchase electricity from us given we were to develop Solar Projects. Legally, we are well represented by Chile’s Largest Law Firm Carey y Cia, who helped structure the Renewable Energy Law for the Country of Chile.
Upower has originated and is currently in the process of implementing a proprietary, newly designed Financial Trademarked Structure, in Registration at The U.S. Patent and Trademark Office. By coining the term, and naming it the Multilateral Power Purchase Agreement (MPPA™) Upower plans to use it as a new worldwide standard on a Global Scale. This unique Financial Engineering Method derived by Upower for Financing Renewable Energy Projects has a distinct composition of securing a “Bankable”, creditworthy Offtaker for Renewable Energy projects, bridging the gap between Developers, large Electrical Distributors, and the End-Users, including the many Mining Companies in need of additional power to match their growth. In our processes, we take into account various factors in our selection when conducting our Due Diligence with groups, while reviewing their energy demands and financial status in an effort to determine financial capacities and long-term sustainability to both receive and pay for such power. Although the process and actions are time consuming and costly, it is all done simultaneously while in active talks with the Chilean power regulator CDEC and its Grids, to assure capacity and timing compliance.
Today, Upower Chile is currently in the Due Diligence process and reviewing all documentation in consideration of several Solar Projects for a potential Takeover, Development, and Construction of “Shovel Ready” opportunities near the Capital Santiago, south of the Atacama Desert in the CDEC-SIC Grid for power needs expressed by several industries including negotiations with: The Metro De Santiago Mass Transit/Subway System, Food Manufacturers, Paper Mills & Forrestry, and Mining Companies.
Mexico. We are in the process of Due Diligence of several potential Solar Projects opportunities being considered in several regions throughout Mexico, with both CENACE and the CFE, La Comision Federal de Electricidad.
South Africa: In Joint Venture with Energy Partners MPS, Marangrang Power Solutions in Johannesburg, South Africa, Upower is discussing Solar Project Opportunities, Land Acquisition, Regulations, Permitting, and Political Maneuvering for developing projects in the region.
Cancellation of Future Planned Growth Opportunities of ACE UPI:
As of September 2015, Upower had entered into a Joint Venture with American Capitial Energy, Inc. (ACE), both a Developer and EPC, Equipment, Procurement, Construction Company developing over 85+ solar projects to date who also, like Upower, had claimed close ties to several Hedge Funds, Project Finance Firms, and Banks. Together, the 2 companies have formed and named a Joint Venture Parent Subsidiary ACE UPI, LLC.. The aim was the Commissioning and Full Development the Solar Plants to their Completion, as is the Goal for its Subsidiaries Worldwide, as had been seen by ACE UPI Chile SpA’s current activities. Upower and ACE are currently no longer engaged in any business or any ongoing independent Solar Energy Analysis, which will include Feasibility Studies and Cost Analysis Reports, including detailed Solar Energy Analysis with Yield Assessments on local Solar Energy, Irradiation Reports, Surface Meteorology Reports, Topographical Studies, Geographical Surveys, EIA’s (Environmental Impact Assessments), and others, to access our Project selection process initiated by Upower’s Pipeline of Solar Deals effective as of April 2017.
…We will keep you posted…