Copenhagen Infrastructure Partners (CIP) is linking up with Forestalia to develop a portfolio of onshore wind farms in Spain with a combined capacity of over 1GW.
The 27 projects, which are located in the Spanish province of Teruel in Aragon, have all secured grid connection rights and are currently being progressed towards financial close, which is expected in approximately 24 months.
Under the terms of the agreement, Forestalia will provide development services to the portfolio until they reach financial close and start construction.
CIP said the transaction represents a new investment for the Copenhagen Infrastructure IV (CI-IV) fund, which recently reached an intermediate closing at €4bn and is approaching its target size of €5.5bn.
The new deal builds on a partnership between Forestalia and CIP, which has already led to investment in the development and construction of the Monegros portfolio comprising of 12 onshore wind farms with a total installed capacity of 487MW also located in Aragon.
CIP said the construction phase of Monegros is progressing well and, despite the challenges caused by Covid-19, it remains on time and on budget.
Commercial operations date (COD) has been achieved for the first wind farms in the Monegros portfolio and the remaining ones will gradually reach COD over the next months, it said.
Output from the Monegros portfolio has been secured through long-term power purchase agreements and earlier this year a consortium of six banks has committed a debt package of approximately €380m available for drawdown upon the wind farms reaching COD.
CIP senior partner Christian Skakkebaek said: “It’s very exciting to continue building on our successful partnership with Forestalia for this new portfolio of more than 1GW of high quality onshore wind projects in Spain.
“We have shown that Forestalia and CIP together have the right competences to successfully deliver such projects, and we are convinced that, together with local and industrial partners, we will be delivering these wind farms to the highest standards.”
Forestalia chair Fernando Samper said: “This new agreement with CIP guarantees very important investments for the province of Teruel, as the plants will create jobs in a territory that needs new opportunities for the future.
“Renewable energy has a great importance for rural areas. Forestalia is developing its entire portfolio, of more than 6GW, together with top-level international partners. It’s very exciting to strengthen our alliance with CIP.”
Watson Farley & Williams and FIH Partners advised CIP on the transaction. Clifford Chance advised Forestalia.