• First investment in Spain
• The total output of the project is 99 megawatts
• Market price risks are largely hedged by a 10-year power purchase agreement
  

Kassel, November 16, 2023: An Article 9 fund advised by EB – Sustainable Investment Management GmbH (EB-SIM) is acquiring a 50 percent stake in an almost 100 megawatt photovoltaic (PV) project in Spain as part of a share deal. This is secured with a long-term private power purchase agreement (PPA) and has been in operation since August 2022.

For EB-SIM, the investment is the first of its kind in Spain. It was able to beat off competition from other potential buyers. EB-SIM’s many years of experience in managing such investments in other European countries was particularly decisive. The fact that EB-SIM only offers and manages sustainable and impact-oriented funds was also important.

“Now that we are well established in Central Europe, we are increasingly turning our attention to Southern European countries,” says Dr. Bernhard Graeber, Managing Director and Head of Alternative Assets at EB-SIM. “These countries are particularly suitable for photovoltaic projects due to the longer and more intense solar radiation, with which we aim to achieve both ecological and economic returns for our investors. In addition, we are supporting the growth of renewable energy infrastructure in a region where this type of asset is becoming increasingly important.”

“The stable framework conditions of the private-sector PPA, the smooth operation in the first few months since commissioning in August 2022 and debt capital providers from Germany with experience in this sector were important requirements for us for a low-risk investment,” adds Dr. Bernhard Graeber.

The project in Lorca consists of a total of three ground-mounted PV parks, which were built by the experienced general contractor Solarig using proven technology from Jinko and Power Electronics. With an estimated annual output of 179.25 gigawatt hours of green electricity, at least 14.5 tons of CO2 equivalents can be avoided compared to energy generation from fossil fuels.

The seller of the project is Foresight Solar Fund Limited (FSFL), which retains a 50 percent stake in the plant. Alexander Ohlsson, Chairman of Foresight Solar, said: “Following a comprehensive analysis of our portfolio, we have concluded that these assets are the ideal option to begin our divestment process. This deal is a clear example of our strategy: we acquired Lorca at the construction stage. We used the expertise of the investment manager to build and commission the plants. In this way, we have achieved the full financial benefit for the company. We are now selling a stake at a premium to realize the value and reinvest capital in other options. At the same time, we retain exposure to an asset that will continue to deliver long-term returns and help cover the dividend.”