Aquila to acquire 100MW Spanish PV duo
- Greco portfolio consists of 2 projects presently under construction in Andalucía
A subsidiary of London-listed Aquila European Renewables Income Fund is to obtain a 100MW solar portfolio presently unfinished in Spain.
The Greco portfolio includes two projects situated around Andalucía, in the south of Spain, which benefit from eye-catching solar irradiation returns.
Building is currently underway with fencing and also earthworks activities, while procurement of all significant devices is currently complete.
Completion rests upon obtaining all of the requisite licenses and also authorisations from local authorities-- including the grid operator-- and also is expected by late 2022.
Greco is expected to give 184 gigawatt-hours of power a year over its lifetime.
Approximately EUR90m will be paid at completion, which is anticipated in late 2022.
An ahead of time consideration quantity will be paid at closing under the sale as well as purchase agreement, keeping in mind that the vast majority of the total factor to consider is delayed up until completion of Greco.
The total consideration paid represents a fixed rate for the purchase and also building and construction of the portfolio.
The agreement is subject to restricted conditions precedent, with shutting expected to take place soon.
Aquila means to safeguard a power purchase agreement for Greco before completion.
Along with the EUR90m the deal is likewise subject to an earn-out mechanism.
The earn-out is determined as 50% of the value uplift achieved between the actual PPA rate participated in versus a reference PPA rate. Payment of the Earn-out schedules after Project completion.
Upon completion, Greco will boost the fund's total portfolio generation capacity by 30% to 432MW.
The addition of Greco will certainly additionally increase the portfolio's general solar capacity to 200MW and raise the portfolio's allotment to PV to 47%4 from 29% by fair value, with the remainder being assigned to wind and also hydro technologies.
