Renovalia nails financing for Spain’s first merchant PV project

Spanish financial services provider Banco Sabadell has agreed to provide €29.7 million to Renovalia Energy Group to build, commission and operate five PV plants in Puertollano, Spain.

The projects do not have long-term energy sales contracts (PPA) or specific remuneration schemes. All electricity from the 79.2MWp El Bonal solar park will be sold on the spot market.

“This operation is called to mark a new trend in the Spanish market, since it is the first time that the financing for a 100% merchant project is closed,” the company said in a press release.

The El Bonal PV park is the first part of a portfolio of more than 1,000 MW of wind and solar capacity that Renovalia plans to develop in Spain as merchant projects. The company is present in six countries: Spain, Mexico, Chile, Italy, Hungary and Canada. It operates and manages more than 805 MW, divided between 17 wind farms and 11 solar parks.

The Puertollano project will feature 240,000 PV modules, each 330 W. They will be mounted on fixed structures across an area spanning ​​103.4 hectares. Once the project is completed, the park will be able to generate 118,000 MWh per year — an amount that could cover the needs of 146,000 people. Commissioning is scheduled for 2020, and the project will be paired with a substation owned by national grid operator Red Eléctrica de España.

Renovalia closed long-term financing with Banco Sabadell, backed by the legal advice of J&A Garrigues. Banco Sabadell was advised by Watson Farley & Williams.