The European Investment Bank (EIB) is providing funding to help build the 300MW Talayuela solar farm in Spain being developed by Encavis and Solarcentury.
EIB is investing €76.5m in the project, which is located in the Extremadura region in the municipality of Talayuela.
The transaction is supported by the European Fund for Strategic Investments, the main pillar of the Investment Plan for Europe, also known as the Juncker Plan.
The €228m Talayuela project has also secured finance from Deutsche Bank, which including the EIB money amounts to €165m.
Talayuela has a 10-year financial power purchase agreement, which hedges the off-take price for approximately 75% of the volume of the production.
Construction will now start and the project is expected to be operational in the second half of 2020.
EIB vice-president Emma Navarro said: “As shown throughout COP 25, the EIB is highly committed to delivering on the fight against global warming. As the EU Climate Bank, we are ready to step up to the challenge.
“For this reason, we are pleased to support Spain’s huge renewable energy potential and help the country to meet its decarbonisation targets.
“Promoting solar energy leads to increasing energy independence and, more significantly, it means reducing the consequences of global warming.”
Encavis chief executive Dierk Paskert. said: “This project marks a milestone both for Encavis and for the Spanish’s renewable energy market, as it highlights the EU support to our growth strategy and it is the first long-term power purchase agreement signed for a solar park without any support from feed-in tariffs.
“The conclusion of this PPA and the launch of the Talayuela solar park next year will take Encavis to a new level and will stimulate the market for comparable contracts in many countries.”
Solarcentury general manager of in Iberia Jose Miguel Ferrer said: “The financial close of Talayuela Solar is a major achievement for Solarcentury and Encavis, as well as a landmark deal that demonstrates the financial viability of Spain’s subsidy-free solar market.
“By demonstrating the long-term bankability of this large-scale project through the signing of our ground-breaking power purchase agreement in September, we have secured the backing of two of Europe’s largest lenders, the European Investment Bank and Deutsche Bank, that share our vision for the project. With everything now in place, we look forward to beginning the construction of the project over the coming weeks.”