Independent power producer (IPP) Sonnedix has inked a framework agreement with European engineering and construction companies Eiffage.
The deal will see Eiffage Energia Sistemas – the Spanish subsidiary of Eiffage group – undertake engineering, procurement and construction (EPC) operations on Sonnedix’s renewable energy project pipeline across Italy, Spain and Portugal. Across these markets, Sonnedix has 858MW of projects under construction and a further 1.7GW in its development pipeline.
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By signing a framework agreement across this southern European portfolio, Sonnedix said that it will “streamline and optimise its growth” by removing the need to secure further, individual EPC contracts.
“This first of its kind agreement will significantly reduce our negotiation efforts, enabling Sonnedix to fast track the construction of our pipeline of projects in southern Europe,” said Jorge Amiano, global head of engineering and construction at Sonnedix.
“While supply chain framework agreements are common, EPCs are normally done on a project-by-project basis. By streamlining this process, Sonnedix is ensuring reliability and certainty whilst increasing competitiveness.”
Eiffage, a France-headquartered engineering company, entered the solar EPC space relatively recently. As of September 2023, the company had the largest operating capacity of any non-US-based EPC, according to data included in a feature published last month by PV Tech Premium.
Italy, Spain and Portugal are prominent markets for Sonnedix’s European operations. In December 2023, it inked a 10-year power purchase agreement with US data company Equinix for the capacity at a 149MW solar PV project in Portugal, its largest project in Europe at the time. Last month Sonnedix secured €260 million (US$283 million) towards Italian solar PV developments, including two projects in Sicily and Sardinia with a combined capacity of 200MW.
Elsewhere, the IPP has been expanding into the Chilean market – in October it acquired a 416MW PV portfolio from the local subsidiary of Italian energy company Enel. The company’s approach in the Chilean market has been to invest in different technologies and hybridise its portfolio, as Daniel Garrido, Sonnedix’s head of growth Americas and Chile general manager recently said to PV Tech Premium.