GE Renewable Energy announced the signing of its first European Power Purchase Agreement (PPA) with its partner, Forestalia. Through this long-term agreement, GE Renewable Energy will source clean energy from El Coto, a new wind farm that will supply more than 60% of its European facilities’ electricity consumption. The PPA is a key component of GE’s plan to achieve carbon-neutral operations by 2030 while enabling new renewable energy generation to come online to help decarbonise the economy. The European Commission, meanwhile, has endorsed corporate renewable PPAs as a key instrument to protect European companies from price volatility and market developments and to accelerate renewable energy, GE Renewable Energy reports.
The financing of approximately €20 million has been signed with Banco Sabadell, which will also provide additional lines of financing for VAT and guarantees. The total investment of €26 million is supported by a 12-year power purchase agreement (PPA) signed with GE Renewable Energy.
Danielle Merfeld, chief Technology officer of GE Renewable Energy, said: “This is a great example of an energy transition that is close to our hearts. We are delighted to partner with our customer Forestalia and support the development of a new wind farm in Europe, generating renewable energy to power our own operations while contributing to job creation and growth in the El Coto region. There is no better way to demonstrate that with the right technology and in collaboration with our partners, we are leading the transition to affordable, dispatchable and sustainable energy.”
Carlos Reyero, CEO of Forestalia, added: “We are delighted with the relevance of this important agreement with GE Renewable Energy, which represents a new step forward in Forestalia’s business plan. Through this wind project wholly owned by Forestalia, and with the PPA signed with GE Renewable Energy, we will intensify the fruitful collaboration between both parties.”
In this transaction, Forestalia has been legally advised by Ramón y Cajal Abogados, while Banco Sabadell has been advised by Clifford Chance.
Ramón y Cajal Abogados´ team was led by partner Javier Menchén and counted on lawyer Saúl Dávila.
Clifford Chance advised Banco Sabadell on the financing with a team led by partner José Guardo, with the support of project finance associates Gabriel Miranda and Claudia de Olaran. The core team was assisted by associates Ángel Muñoz regarding Derivatives, Carlos Carrera for Tax matters, Mónica Romero regarding Regulatory matters and Clara Ortells in relation to Real Estate matters.
