Encavis is investing nearly €225m (£200m) and the project developer Solarcentury will also participate in the investment with 20%
German renewable energy developer Encavis has signed a 10-year power purchase agreement (PPA) with an international energy company to sell power generated from its 300MW solar plant near the Spanish city of Talayuela.
Encavis is implementing the solar plant in Spain through a long-term private sector power purchase agreement without any state feed-in-tariff.
Encavis will supply 4300GWh over the term of the contract
Under the PPA, Encavis has agreed to transmit a total quantity of 4300GWh of energy to its customer, which operates in more than 40 countries.
Encavis is investing nearly €225m (£200m) and the project developer Solarcentury will also participate in the investment with 20%. The project is being financed by a renowned consortium of banks.
The plant is expected to be connected to the grid towards the end of the third quarter of next year. It expects the solar plant to generate annual sales of around €25m from its first full year of operation. The company also expects the return on investment will be above the average yield of Encavis’ total portfolio.
Encavis CEO Dierk Paskert said: “The first long-term power purchase agreement (PPA) signed for a solar park without any support from feed-in tariffs is a milestone for Encavis with a clear signal effect for further contracts of this kind and supports our consistent growth strategy in this market segment.
“The conclusion of this PPA and the launch of this park next year will take Encavis to a new level, just as it will stimulate the market for comparable contracts in many countries.”
Last month, the company had acquired a 30% minority stake in Stern Energy, which has been its long-term Operation and Management (O&M) partner. It acquired the stake to strengthen its technical solar services business.
Over the past year, Encavis has significantly expanded its portfolio, which now consists of a total of 175 solar parks and 69 wind parks in ten European countries with a total generation capacity of nearly 2GW.