Uncertainty over the future of the Jamaica Public Service Company’s electricity licence is delaying Wigton Energy’s solar expansion, holding up projects that could substantially increase the listed renewable energy company’s revenue and profits, according to Taking Stock analyst David Rose.
Speaking on Taking Stock with Kalilah Enriquez Reynolds on October 20, Rose said the unresolved position was affecting Wigton’s ability to finalise the power purchase agreements needed to secure financing and begin construction.
Rose, who was discussing developments from Wigton’s October 16 annual general meeting, said management had outlined the potential for the business to generate approximately J$4 billion in annual revenue and J$1 billion in net profit as it expands. Those figures represent ambitions for the enlarged business, rather than results already achieved.
The obstacle, he explained, is the sequence required to develop large electricity projects: secure a buyer through a power purchase agreement, obtain financing, then build.
“Without the PPA in place, you can’t move forward,” Rose said.
Why JPS matters
A power purchase agreement sets the terms under which a generator sells electricity, including the price and duration of the arrangement. Rose explained that JPS is the customer for the electricity produced by Wigton’s three windfarm phases in Manchester.
He distinguished electricity generation from transmission and distribution. While other companies can generate power, JPS controls the network used to deliver that electricity to customers.
For Wigton’s planned utility-scale solar developments, an agreement with JPS is therefore a critical step in turning project approvals into construction and, ultimately, earnings.
Rose linked the delays to uncertainty surrounding JPS’s licence, which is due to expire in July 2027. He said the lack of clarity over arrangements beyond that date was making it harder for the utility to enter new commitments.
“This state of paralysis does not benefit any party,” he said.
Approvals without construction
Rose said Wigton’s expansion programme includes roughly 70 megawatts of solar capacity, combining a project associated with its first windfarm phase and capacity awarded through the Generation Procurement Entity’s competitive process.
He noted that awards had been made in November 2024 and environmental approvals subsequently obtained, yet the projects had still not progressed to construction by October 2026.
Wigton has also engaged Mayberry Investments to help arrange financing. However, Rose said the unresolved power purchase agreement remains the hurdle preventing the next stages from moving ahead.
According to Rose, Wigton’s board and management have raised their concerns with the Office of Utilities Regulation, the energy ministry and other stakeholders. He said management had also been engaging the minister on the delays.
Existing operations versus future growth
Rose drew a distinction between Wigton’s current operations and the expansion it wants to undertake. Existing agreements for its second and third windfarm phases would continue under their contractual terms, he said.
The immediate concern is the company’s ability to add capacity and grow revenue and earnings.
That distinction also matters when investors compare Wigton with other listed infrastructure businesses. Responding to a viewer’s comparison with TransJamaican Highway, Rose said Wigton’s wind generation is constrained by installed capacity and the availability of wind. Expanding requires new projects, approvals and contractual arrangements.
A company can therefore have opportunities for growth without being able to realise them quickly.
Looking beyond utility-scale projects
Wigton is also pursuing other routes to expansion. Rose highlighted its commercial and industrial energy business, including a renewable energy installation for Carreras, and said management had identified a potential pipeline of around 10 megawatts in that segment.
He also pointed to opportunities elsewhere in the Caribbean as Wigton seeks to broaden its reach beyond Jamaica’s procurement timetable.
For shareholders, the key development to watch is whether the outstanding agreements advance far enough to unlock financing and construction. Until then, the company’s larger revenue and profit ambitions remain dependent on projects moving from plans into operation.
Watch David Rose’s full discussion on Taking Stock:
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