Major subsidy-free solar project secures financially-hedged PPA in Spain

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Image credit: Solarcentury

Spain’s subsidy-free solar scene has marked another boost after a power purchase agreement (PPA) was secured for a major project in the country’s centre-west.

Developers Encavis and Solarcentury have now inked a deal with an unidentified offtaker for Talayuela Solar, a zero-subsidy 300MWp project planned in the Cáceres province.

In a statement today, the duo explained the swap-type PPA will run for 10 years and hedge offtake prices for around three-quarters of Talayuela’s power output.

The PPA arrangement was adapted to Talayuela from a template from the International Swaps and Derivatives Association, Encavis and Solarcentury said.

“[The deal] is structured as a hedge of Talayuela Solar's capture price rather than base load price, thus providing an optimal as produced hedge for the Talayuela project revenues,” they said.

The statement declined to name the offtaker, describing it however as a “leading international energy company” with a “solid investment grade credit rating”.

The unidentified counterparty is, the document went on to say, an energy firm with a pan-European asset base with activity across 40 countries and past experience with financial hedges.

Foreign names crowd Spain’s subsidy-free PV scene

The Talayuela PPA signing comes roughly one year after UK-headquartered Solarcentury sold a 80% project stake to German peer Encavis, retaining a 20% holding in the process.

The offtaker deal emerges as the 300MWp project, having secured all permits and a grid connection point, inches towards its construction launch in autumn 2019.

The subsidy-free installation, set to be developed between Solarcentury, Kompa Solaire Sasu and Genia Global Energy Solutions, is meant to be ready for grid-linking by June 2020.

The zero-subsidy move is the latest of a fast-growing series in Spain, a country home to a fifth of Solarcentury’s global pipeline of solar PV projects.

Talayuela’s PPA success follows that of BayWa r.e.’s Don Rodrigo 2, the 50MWp extension to a 175MWp up-and-running predecessor that is seen as a subsidy-free trailblazer in Spain.

Earlier this month, BayWa r.e. walked PV Tech through key decisions around Don Rodrigo 2, including the rationale behind the project’s smaller size and the choice to steer clear of bank finance for now.

The prospects and challenges of European solar's new subsidy-free era will take centre stage at Solar Media's Large Scale Solar Europe 2020, to be held in Lisbon on 31 March and 1 April 2020

Read Next

June 15, 2021
Everwood Capital and the Prodiel Group have combined to create DVP Solar, a joint-venture (JV) focused on developing large-scale international photovoltaic projects, with gigawatts at various stages of development.
June 7, 2021
Solar PV power systems contributed to 11.4% of Spain’s power mix last month, setting a new record for monthly production, according to new data from grid operator Red Eléctrica de España.
PV Tech Premium
June 4, 2021
Spain’s PV sector has been boosted by a new auction mechanism that aims to support at least 10GW of capacity by 2025. José Donoso, general director of Spanish solar association UNEF, discusses what is driving growth and the various policies that the industry is asking for.
June 4, 2021
Statkraft has completed what it claims to be Albania’s first floating solar plant, energising a 500kW, first phase install at the base of a hydropower project on the country’s Banja reservoir.
June 1, 2021
Lightsource BP has said it won more than 40% of the total awarded capacity in Greece’s renewables auction last week through a co-development partnership, increasing its global presence to 14 countries.
May 31, 2021
Solar PV bidders picked up all the available 350MW of capacity in Greece’s latest renewables auction, which took place on 24 May and closed with lower prices than the country's previous tenders.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 6, 2021
Solar Media Events
August 24, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021