Renewables developer Elawan Energy has closed €760 million (US$868 million) in financing for a 1.3GW solar PV, wind and battery energy storage system (BESS) portfolio in Spain.
The financing is structured as a non-recourse project finance combining all three technologies in a single facility. Project Himalaya comprises approximately 1GW of already operational assets and a new greenfield tranche under construction and development of nearly 300MW.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
Solar PV accounts for the majority of the 1.3GW portfolio, with 989MW, while BESS and wind account for 285MW and 74MW, respectively. Of the greenfield portfolio, solar PV accounts for 215MW (80%), alongside 28MW of BESS capacity.
The financed projects in the renewables portfolio are mostly located in the central Spanish regions of Castile and León, Castilla-La Mancha and northeastern Aragon. The portfolio is largely contracted under long-term power purchase agreements (PPAs).
Moreover, the non-recourse project finance also incorporates a 2GW accordion tranche that will allow new assets from Elawan’s development pipeline to be added in the future. The transaction gives flexibility to accompany the company’s growth.
The transaction was secured through Spanish banking institution Banco Santander, acting as the mandated lead arranger and underwriter, while fellow Spanish bank Banco Sabadell acted as mandated lead arranger.
“The closing of Project Himalaya strengthens the financial resilience of our operating portfolio in Spain and gives us the flexibility we need to keep growing through the hybridisation of our assets. It is a further step in our strategy to consolidate our position as a long-term independent renewable energy producer”, said Pedro García Crespo, chief investment officer.
Amid a period of significant volatility in power prices, the transaction has been structured as a long-term financing designed to be sustainable. According to Elawan Energy this gives the company a stable financial base against fluctuations in the electricity market.
The company added that the project Himalaya stands out in the Spanish renewable financing market, due to its multi-technology transaction that brings together solar PV, wind and BESS within a single structure and includes financing for BESS.
Elawan currently operates in 15 countries, with a portfolio that includes more than 2 GW in operation, close to 0.7 GW under construction, and a development pipeline exceeding 11 GW.
