Foresight Group has acquired the Virgen del Carmen subsidy-free solar power project Huelva, in south-west Spain.
The 26.1MW project has been acquired from developer IM2 Energía Solar, who will continue their involvement as both EPC (Engineering, Procurement and Construction) and O&M (Operations and Maintenance) contractor.
The deal is Foresight Solar Fund’s first subsidy-free project and marks its debut in continental Europe.
Foresight, however, has a growing 175MW portfolio of unsubsidised solar assets in the Iberian region.
Construction at the site will start immediately and the project is expected to be fully commissioned in Q2 of 2021.
It will generate around 50GWh of clean electricity every year, enough to power 15,000 homes and making a significant contribution to Spain’s emissions targets.
Designed with a single-axis tracker structure to exploit fully the higher irradiation levels achieved in the south of the Iberian peninsula,
A long-term PPA with a fixed electricity price until 2030 has been reached with Shell Energy Europe Limited.
The acquisition makes Foresight Solar’s 869MW diversified international portfolio the largest listed solar-dedicated investment company by installed capacity, it said.
Foresight Solar investment manager Ricardo Piñeiro said: “This asset is a true milestone in the development of Foresight Solar’s geographically diversified portfolio.
“It further expands the Fund’s international coverage into southern Europe and as the Fund’s first subsidy-free project, the long-term PPA with such a strong counterparty as Shell, will contribute to the delivery of stable and predictable cashflows for our investors.”