Grenergy Renovables has penned a solar supply agreement with Spanish utility Galp, its first such agreement in the country.
Under the terms of the deal, Grenergy will provide Galp with power from 200MW of solar projects located in Spain, forecasted to be in the region of 300 – 360GWh each year.
The power purchase agreement (PPA) has a term of 12 years and is set to kick in from August 2021.
Grenergy said the deal formed part of its strategy to strike private PPAs with credit-quality companies as it strives to push forward a 1GW-plus solar project pipeline.
While the developer did not mention any specific projects that this contract will support, the 200MW is listed as being at a ‘backlog stage’ prior to construction starting.
A further 660MW is listed as being at an advanced stage of planning, while 120MW lies at an early stage.
David Ruis de Andrés, chief executive at Grenergy, said that not only were an increasing number of companies looking at long-term power purchasing structures, but that the market stood to support developers in procuring project finance.
Spanish stock exchange-listed Grenergy has more commonly been associated with Latin American markets in recent times, particularly Chile, where it has connected and acquired a number of utility-scale PV projects and earlier this month lined up support from a number of leading banks for a 103MW project in the Atacama Desert, boasting bifacial panels.
Spain, meanwhile, continues to be among the world’s hottest markets for solar investments.
Last week energy distributor Audax agreed to buy 100GWh each year from a 50MW project innogy is bringing forward, adding to developments from the likes of Iberdrola and Lightsource BP who are sealing PPAs in the country.
The prospects and challenges of solar's new era in Europe and beyond will take centre stage at Solar Media's Solar Finance & Investment Europe (London, 5-6 February) and Large Scale Solar Europe 2020 (Lisbon, on 31 March-1 April 2020).