Foresight Solar continues Spanish run with new subsidy-free PV purchase

UK investment company Foresight Solar Fund has continued its overseas expansion with the acquisition of three subsidy-free solar assets in Andalucía, Spain.

Transaction costs for the 98.5MW portfolio are expected to be €72 million once construction is completed and include the acquisition of development rights for approximately €15 million.

Construction of the assets is slated to start this summer, with operations targeted to begin in June 2022. Foresight said it anticipates that a long-term power purchase agreement (PPA) will shortly be signed with a European energy supplier.

The deal comes after Foresight Solar made its debut in continental Europe with the acquisition of a 26.1MW solar project in Spain last September. Also in Andalucía, the unsubsidised facility is backed by a PPA with Shell Energy Europe, the power utility subsidiary of Royal Dutch Shell.

Foresight Solar Fund said it has been able to leverage the regional knowledge of its investment manager, Foresight Group, which will be managing a portfolio of more than 200MW of subsidy-free renewable assets in Spain through its offices in Madrid.

Alex Ohlsson, chairman at Foresight Solar Fund, said the latest purchase represents “a meaningful step forward for the company’s international diversification and its increased presence in the subsidy-free solar market”.

Following completion of the deal, Foresight Solar’s portfolio of 58 solar assets will have a capacity of 994MW, with 723MW of that in the UK, 146MW in Australia and the remainder in Spain.

Foresight Group recently announced the formation of a joint venture that will develop five solar PV plants in England and Wales, with a total generating capacity of close to 700MW. The company said opportunities for asset optimisation and a reduction in capital costs will make unsubsidised solar investment increasingly attractive.