Encavis AG acquires the largest solar park in the history of the company with a generation capacity of 300 MW
SDAX-listed Hamburg-based solar and wind park operator Encavis AG has acquired the largest solar park in its history, the park is located near the Spanish town of Talayuela. The solar park with a generation capacity of roughly 300 MW is one of the largest of its kind in Europe. Encavis thus implements another major growth step from its 1.1 gigawatt strategic partnership with the British project developer and operator Solarcentury.
With the solar park in Talayuela in Spain, Encavis AG will realise a solar project entirely without government feed-in tariff. For the first time in the company”s history, Encavis will thus translate the success of power purchase agreements PPAs that are common practice in the wind sector to the high-growth solar power market. The price for the electricity generated by the photovoltaic plant in Talayuela will be secured by a highly creditworthy European customer at a fixed price over a period of ten years. The project will be financed by a renowned syndicate of banks.
The total investment including the project-related debt capital amounts to roughly EUR 225 million. Solarcentury will bear 20 percent of the investment and be in charge of commercial and technical management of the park. The plant is scheduled to be connected to the power grid at the end of the first quarter of 2020. Encavis expects the photovoltaic plant to generate revenues of around EUR 25 million p.a. as of the first full year of operation. The investment will significantly increase the average yield of Encavis” total portfolio.
The transaction is subject to the usual market conditions precedent.
“The solar park in Talayuela represents a milestone in our consistent growth strategy and at the same time is another major step in our strategic partnership with Solarcentury,” said Dr. Dierk Paskert, CEO of Encavis AG. “The acquisition of this park will open up a new dimension for our total portfolio, which will continue to meet all return-related requirements. At the same time, we will expand our business segment to include the fast-growing market for direct power purchase agreements with the corporate sector. This will clearly shape the future of Encavis,” Paskert added.
Frans van den Heuvel, CEO of Solarcentury added: “This is one of the largest and most powerful solar projects in Europe and is made all the more innovative by being built without subsidy. The acquisition pays testament to the quality of our combined skills and to the strong and productive relationship we have with Encavis. Talayuela is concrete evidence of Solarcentury”s transition to a fully integrated platform that develops, builds and operates solar and storage assets. ”
The project was initially developed by Kompa Solaire SASU and Genia Global Energy Solutions, S.L. both engineering companies which develop and promote renewable energy projects for the spot market.