Greencoat Renewables will buy Lightsource BP’s Torrubia solar farm, marking the firm’s first solar deal and access into the Spanish market. The 50MW asset is currently being built in La Muela, Spain, having commercial operations slated to begin in Q4 2022.
The deal is set up as a forward sale, which means it won’t close until Torrubia is fully functional. Greencoat Renewables’ European development strategy is supported by this arrangement, which follows the firm’s expansion into France, Finland, and Sweden.
With high solar resources and a commensurate cheap cost of power generation, Spain represents an intriguing prospect. It has emerged as among the leading European unsubsidized markets. Lightsource BP is going to finance and maintain the solar farm’s construction, as well as provide ongoing operational management services.
“The mix of low-cost renewable energy and a well-created Corporate PPA market makes Spain a highly appealing target for renewable energy investment,” said Paul O’Donnell, Greencoat Capital partner.
“We’re ecstatic to have secured such a high-quality investment from Lightsource BP, and we’re looking forward to exploring more value-adding opportunities in Spain. We expect to see more potential in the unsubsidized renewable market as the renewable generating industry develops, and we feel Greencoat Renewables is well situated to gain both in Ireland and Europe.”
Lightsource BP national head Fernando Roger stated: “We are thrilled to work with Greencoat Renewables on such strategic acquisition, which will be important for our development in the Spanish market. As one of our most important markets, we want to boost the influence of our advances on the energy revolution in Spain.
“We can boost Lightsource BP’s market effect by selling as well as reinvesting in new projects, ultimately placing Spain as a crucial hub for our operations. This method allows us to accelerate our impact on the energy revolution, which is critical if we are to meet government targets and successfully transition to a low-carbon economy.”
Greencoat Renewables has a portfolio of over 680MW of generation capacity and invests in euro-controlled renewable energy infrastructure assets. The company’s strategic concentrate is on the very huge secondary markets of the continental Europe, where it sees a substantial opportunity to accumulate functioning wind and solar assets, as opposed to its core market of Ireland. Greencoat Capital LLP, which is an experienced investment manager in the listed renewable energy infrastructure sector, is in charge of the fund.
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