300 MW solar project in Spain receives investment

Last week the European Investment Bank (EIB) has announced that it invested EUR76.5 million (US$85 million) in one of the largest solar projects in Spain. The project, sponsored by Encavis AG and Solarcentury, involves the construction and operation of a 300 MWp photovoltaic solar plant in the Spanish region of Extremadura, more specifically in the municipality of Talayuela. The transaction is supported by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe, also known as the Juncker Plan.

At 300 MWp, the Talayuela Solar plant will be one of the most powerful solar projects in Europe, capable of producing enough energy to power around 150,000 households per year at a very competitive price. Moreover, the project will contribute to reducing CO2 emission by more than 171 kt CO2-e/year and approximately 400 people will be employed during the construction phase.

The EUR228 million (US$253.5 million) project has also secured project financing from the EIB and Deutsche Bank for an aggregate amount of EUR165 million (US$183.5 million), which reached financial close at the end of November.

The Talayuela Solar Plant is one of the first greenfield renewable energy projects to be financed in Spain without any form of government/public support. The Project entered into a 10-year financial Power Purchase Agreement (PPA) in September 2019, which hedges the off-take price for approximately 75% of the volume of the production. Following these developments, Encavis AG has provided Solarcentury with a notice to begin construction of the plant, which is expected to be operational in the second half of 2020.