Top Spanish bank backs fully merchant 79.2MW PV project

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
(Image credit: Shutterstock)

One of Spain’s largest banks has gotten behind a utility-scale solar portfolio, planned without support from auctions nor power purchase agreements (PPAs).

Banco Sabadell, a financier sitting on some €222 billion (around US$250 billion) in total assets last year, has agreed to back a 79.2MW PV pipeline Renovalia is planning in the Ciudad Real province.

The bank will supply a €29.7 million (around US$32 million) senior credit to finance construction of the five-plant solar cluster, planned near the city of Puertollano.

Contacted by PV Tech today, a source with knowledge of the transaction said the debt-to-equity ratio will lie around the 75%-to-25% mark.

The 79.2MW portfolio will in principle be developed without a PPA, directly selling its power output to the market on a merchant basis.

Law firm J&A Garrigues advised Renovalia Energy during the financing talks, while lawyers at energy, real estate and transport specialist Watson Farley & Williams counselled Banco Sabadell.

The transaction looks set to further boost Spain’s credentials as a European hotspot for zero-subsidy solar, drawing anew the eyes of foreign developers after years of policy uncertainty.

Unsubsidised activity to date has centred around PPA-driven moves, including deals by Statkraft (270MW) BayWa r.e. (175MW), Luxcara (121MW), aventron (50MW) and potential forays by Solaria.

As the utility-scale pipeline gathers steam, so do concerns around how players will navigate merchant risks, set to kick in as increasingly shorter PPAs expire.

At an Intersolar 2019 session attended by PV Tech, Sean Maguire, commercial VP for European PV and wind at Statkraft, explained his firm is amongst those eyeing greater merchant exposure.

“Will merchant solar become the norm? We don’t believe so,” he commented. “But as portfolios grow and subsidies start to fall away, funds and investors may start to look into owning around 20-30% of their portfolios on a merchant basis.”

Read Next

January 21, 2022
The European Commission has launched a public consultation on solar energy on the continent as it continues preparations to publish its solar strategy later this year.
January 19, 2022
Renewables developer R.Power has signed a power purchase agreement (PPA) with energy trader Axpo for nearly 300MWp of solar in Poland.
January 13, 2022
Renewable power purchase agreement (PPA) prices in Europe continue to climb, rising 7.8% quarter-on-quarter in response to the continent’s deepening energy crisis, according to new research from  LevelTen Energy, a provider of renewable transaction infrastructure.
January 12, 2022
A newly launched independent power producer (IPP) from clean energy fund manager Glennmont Partners is to develop a 473MWp portfolio of solar PV plants in Spain.
Sponsored
January 6, 2022
PV Tech speaks to Philipp Matter, president for Europe at GCL System Integration, to discuss last year's supply chain crises, targeting growth in Europe and the prospects for competing new solar technologies.
January 5, 2022
Spain will allocate up to 140MW of distributed solar PV capacity in the country's next renewables auction, set to take place this April.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
January 26, 2022
Free Webinar
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal