ERG Acquires 149 MWp Solar Project Consolidating its Presence in Spain

May 8, 2023 02:00 PM ET
  • ERG takes a 100% stake in Garnacha Solar SL that has the solar farm.
  • The value of the deal in terms of enterprise value is EUR 170 million, with an equity value of EUR 80.5 million.

European wind & solar energy significant ERG, through its subsidiary ERG Spain HoldCo SLU, has authorized an agreement with IBV Solar Parks, BV, a firm of the German group ib vogt GmbH which is a leading global utility-scale solar growth platform.

ERG stated that the agreement is for the purchase, directly or through a subsidiary, of a 100% stake in Garnacha Solar SL, which is the proprietor of a solar energy plant located approximately Castilla as well as León, in north-western Spain.

The main statement of ERG stated that the plant will have an installed capacity of 149 MWp and is presently in a sophisticated phase of building. ERG anticipates the commercial procedure of the solar farm to be gotten to by the end of 2023.

The Garnacha solar power plant, geared up with latest-generation bifacial panels and also tracker system, will certainly have a load element of around 22% as well as an estimated overall annual production of around 280 GWh, representing 136 kt of CO2 emissions prevented yearly. ERG discussed that 70 percent of the power generated by the plant will certainly gain from a 12-year pay-as-produced Power Purchase Agreement (PPA) with a top company equivalent.

The value of the transaction in regards to enterprise value is EUR 170 million, with an equity value of EUR 80.5 million. The purchase is expected to close by the 3rd quarter of 2023, stated ERG.

Paolo Merli, Chief Executive Officer of ERG, claimed, "The acquisition of the Garnacha solar energy plant, the largest in terms of capacity in the Group's renewable portfolio, consolidate our presence in Spain where we will certainly reach 266 MWp of installed capacity by the end of the year, with over 1 GW of under growth solar pipeline. Via this deal, ERG achieves a vital positioning in the country, with possible future commercial synergies, as part of the geographical and technological diversification procedure envisaged in the 2022-2026 Business Plan".

ERG has pan Europe presence in both solar and wind capacities. With regards to solar energy, ERG operates in Italy, with 175 MW, in France with 79 MW, and also in Spain with 92 MW of mounted capacity. In Spain, it has 2 solar plants in operation in the Castilla de la Mancha and Andalusia regions of southern Spain, with a capacity of 50.0 and also 41.6 MW, specifically, amounting to 91.6 MW.

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