Germany-based Aquila Capital, the alternative asset management division of the Aquila Group, has acquired four solar photovoltaic (PV) projects with a combined capacity of over 170MWp in Portugal from an undisclosed seller.
Aquila Capital has not revealed the project locations or the financial aspects of the transaction. However, it said that construction of the projects is slated to be completed by the end of next year.
Aquila Capital stated that it was attracted by the very good conditions at the project locations along with the low cost of PV power systems.
The German firm has also sealed a power purchase deal for the electricity generated by the solar plants with a local third party in a move to mitigate exposure to potential fluctuations in the price of electricity in the future.
Aquila Capital EMEA Investment Management Energy & Infrastructure head Susanne Wermter said: "Even without state funding support, these projects are a highly attractive investment.
“With the help of a long-term power purchase agreement, we have been able to secure stable attractive income for our investors.”
Currently, Aquila Capital says that Portugal heavily relies on importing energy due to its sparse levels of fossil energy reserves. In order, to check this, the Portuguese Energy Strategy is defined to bring down this dependency by expanding the country’s renewable energy infrastructure.
The company believes that Portugal has the potential to provide attractive opportunities for more photovoltaic investments in the future due to the strong solar radiation in the region along with the presence of a functioning technical infrastructure.
Aquila Capital currently handles a renewable energy portfolio with a transaction volume of over €3bn across 10 countries.