Germany-based renewable energy operator Encavis has acquired 80% stake in 300MW solar park located in the Spanish town of Talayuela, from Solarcentury.
The total investment required to construct the solar park, in which Encavis has bought the stake, will be €225m. The remaining 20% stake in the solar plant will remain with Solarcentury.
Encavis expects to realize the solar project without any government feed-in tariff. Power generated by the solar farm will be sold to a European customer for a period of ten years, at a fixed price.
As per Encavis, the solar plant could generate nearly $25m annually from the first year of operation and it is expected to significantly increase the company’s average yield from its portfolio.
Encavis CEO Dierk Paskert said: “The solar park in Talayuela represents a milestone in our consistent growth strategy and at the same time is another major step in our strategic partnership with Solarcentury.
“The acquisition of this park will open up a new dimension for our total portfolio, which will continue to meet all return-related requirements. At the same time, we will expand our business segment to include the fast-growing market for direct power purchase agreements with the corporate sector. This will clearly shape the future of Encavis.”
Besides holding the 20% stake, Solarcentury will also provide commercial and technical management of the park. The solar plant is expected to begin operations and connected to the grid by the end of first quarter of 2020.
Solarcentury CEO Frans van den Heuvel said: “This is one of the largest and most powerful solar projects in Europe and is made all the more innovative by being built without subsidy. The acquisition pays testament to the quality of our combined skills and to the strong and productive relationship we have with Encavis.
“Talayuela is concrete evidence of Solarcentury’s transition to a fully integrated platform that develops, builds and operates solar and storage assets.”
Encavis is an independent power producer based in Hamburg, Germany. It owns and operates a total generation capacity of nearly 1.9GW, which includes wind farms and solar parks, located across Germany and in one other European countries.