AMPYR Solar Europe (ASE), a pan-European solar IPP established by AGP Sustainable Real Assets, Hartree Partners and NaGa Solar, today announced the closing of a €400m facility with CarVal Investors.
The financing will support ASE’s plans to bring over 2GW of solar power capacity into operation by 2025.
ASE executive chairman Andrew Gould said: “One year after its inception, we couldn’t be more proud to have reached this key milestone in ASE’s journey to become a leading European solar IPP.
“With the support of CarVal as our capital partner, we are on a steady path to turn our fast-progressing pipeline into a portfolio of large-scale solar power producing assets, that will contribute meaningfully to Europe’s energy transition.”
CarVal has made available an initial tranche of €250m as well as a further incremental tranche of €150m.
This facility will predominantly cover the construction costs of solar assets as well as providing some development capital and operational expenses.
The initial focus will be on sites in Germany, Netherlands, and the UK with the facility having the potential to extend to other European jurisdictions as well as allowing for funding of energy storage projects.
CarVal Investors managing director Jonathan Hunt said: “We are excited to have ASE as one of our partners as we expand our footprint in the rapidly evolving clean energy transition.
“We view the breadth of skills and track record of the team as market leading and look forward to funding their growth.
“The capital-intensive nature of the clean energy transition means that partnerships like this remain one of the largest opportunity sets for CarVal.”
ASE expects to break ground on its first projects in the second quarter of this year and be operational by the end of the year.
By 2025, once fully deployed, the generating portfolio is expected to be among some of the largest utility scale solar platforms in Northern Europe.
AMPYR Energy global chief investment officer AGP Partner Elmahdi Tahri said: “This transaction is yet another testament to the increasing investor engagement on the climate crisis, which cannot be resolved without massive private capital contribution.
“We are pleased to partner with CarVal Investors to help accelerate the transition to a zero-carbon Europe, and look forward to replicating this model across AMPYR Energy’s renewable platforms globally.”
This initial 2GW development forms a significant part of ASE’s overall ambition to roll out 5GW of large-scale solar projects in Northwest Europe.
Hartree Partners partner and co-head of renewable infrastructure assets Abraham Kozhipatt said: “Volatile and competitive power markets increasingly require solar developers to optimise between long-term power purchasers, the grid and storage assets.
“ASE combines the partners’ strengths in asset development and merchant market risk management and we are delighted that CarVal recognise and support our strategy.”