Sonnedix has signed a solar power purchase agreement (PPA) with Sidenor Aceros Especiales, a producer of long steel products.
The 12-year PPA, guaranteed by the Spanish Export Credit Agency (Cesce), covers output from the 36MW Fraile solar farm in Herencia, in Ciudad Real.
This is the first energy purchase agreement signed with the support of the Spanish Reserve Fund for Guarantees of Electro-intensive Entities (FERGEI), implemented by the Ministry of Industry, Commerce and Tourism in collaboration with Cesce.
Alongside the PPA, Sonnedix financed the solar plant with Bankinter e ICO, which acted as interest rate hedge entity and Bondholders as agent entity. On this operation, Bankinter Investment has advised Bankinter.
Carlos Guinand, Executive Chairman of Sonnedix, said: “We are very proud to have achieved such a special agreement; it is not only our first corporate PPA in Spain, but also the first purchase agreement of an electro-intensive plant through a State-backed guarantee, which means a further step taken in terms of supporting and promoting the use of renewable energy in the country.
“It means we are actively participating in this change, fulfilling our role as a key agent in the Spanish energy transition.
“And we certainly hope to replicate this same structure with other electro-intensive customers in the country.”