Foresight Solar Fund Limited, a fund investing in a diversified portfolio of ground-based solar PV and battery storage assets in the UK and internationally, announced that it has entered into a 10-year Power Purchase Agreement (PPA) over the electricity to be generated at the company’s 98.5MW solar portfolio in Spain.
The counterparty to the PPA is Statkraft, Europe’s largest producer of renewable energy, developing, building and operating solar, hydro, wind and gas assets.
The portfolio comprises three subsidy-free greenfield assets located in the Andalusia region of Spain and was acquired by the company on 31 December 2020. It is on track to begin operations in June 2022.
Statkraft provides security and visibility to the new renewable facilities of Foresight in Spain, while contributing to the fulfilment of the goals contemplated in the Integrated National Energy and Climate Plan (PNIEC). The power generated by these solar plants will save 68,000 tonnes of CO2 emissions annually.
The output of the plants will be used to supply industrial and commercial customers with competitive power in Spain. Statkraft supplies wind and solar power from Iberian assets and is fully committed to helping customers and supply chains transform to 100% renewable power and deliver on their sustainability targets.
In addition, this increases the portfolio of Spanish assets owned by third parties and managed by Statkraft. The portfolio already exceeds 1,100 MW of both wind and solar origin. In total, Statkraft has entered into more than 40 power purchase agreements in Spain, boosting the green transition of the Spanish industry, since the start of its activities in 2018.
The PPA provides Foresight Solar with a 10-year fixed price for around 70% of the portfolio’s annual production and increases the company’s earnings visibility.
“We are delighted to have secured this PPA with Statkraft. It secures an attractive level of contracted revenues for our Spanish portfolio over a 10-year period and represents another significant milestone in the development of Foresight Solar’s international operations.”Ross Driver, director at Foresight
“This PPA further consolidates our excellent working relationship with Statkraft and reinforces our strong position in the unsubsidized renewable energy market in Spain.”Alfonso Martinez, investment manager at Foresight
The Osborne Clarke´s team was led by partner and head of the Energy and Utilities team of Osborne Clarke in Spain Luis Castro, with support from senior associates Ana Isabel Lozano (Commercial), Juan Luis Juez (Finance) and Alvaro San Felipe (Regulatory). Partner and head of Banking & Finance practice in Spain Eduard Arruga provided additional assistance.