PPA announced for Solarcentury and Encavis project Talayuela Solar
Valencia, September 17 2019: Solarcentury, the global integrated solar power company, together with the solar and wind operator Encavis AG, has announced the signing of a financial Power Purchase Agreement (PPA) for Talayuela Solar; the 300 MWp project in Cáceres, Spain. Talayuela Solar is being built without subsidy and the power from the plant will be sold on the open market. The swap that has been signed is a financial instrument which hedges the off-take price for approximately 75% of the volume of production ensuring both a secured stable income for the first 10 years of operation and the bankability of the project.
The PPA is based on industry standard documentation published by the International Swaps and Derivatives Association (ISDA), more commonly used to hedge financial interest rate or currency risks and has been tailored to the Talayuela Solar project. The PPA is structured as a hedge of Talayuela Solar’s capture price rather than base load price, thus providing an optimal as produced hedge for the Talayuela project revenues.
The PPA counterparty is a leading international energy company with a solid investment grade credit rating and a pan-European asset base, active in more than 40 countries and with a proven track record in financial hedges.
Jose Miguel Ferrer, General Manager of Solarcentury in Iberia said: “PPAs of this nature are still extremely new and rare; the signing of this contract is the culmination of a significant amount of work that will help lay the track for the expansion of subsidy-free solar in Europe.” Solarcentury has a 1GWp pipeline in Spain and a 5GWp pipeline globally.
At 300MWp, Talayuela Solar will be one of the most powerful solar projects in Europe. The solar energy produced is enough to power 150,000 homes for an entire year (enough to power all the homes in Badajoz). The plant has been developed by Solarcentury in conjunction with Kompa Solaire Sasu and Genia Global Energy Solutions, SL. In October 2018 80% of the plant was sold to Encavis AG with Solarcentury retaining a 20% stake.
The connection to the grid is already completed, all permits are in place and Solarcentury is expected to start construction in the Autumn. The plant is expected to be connected to the grid by the end of the second half of 2020.
Notes to editors
Solarcentury’s press office:
Nick Collins / Isobel Knight / Alice McLaren
+44 (0)20 3128 8100
Established in 1998, Solarcentury is a global integrated solar power company, and a leader in the development, construction and operation of solar projects and smart energy technology at all scales, across Europe, Latin America and Africa.
Independent and headquartered in the UK, Solarcentury is known internationally for developing and building some of the largest solar farms in the UK, Netherlands, Spain, Kenya and Mexico, as well as other pioneering projects including the world’s first solar bridge at Blackfriars Station in Central London and IKEA’s residential solar offer in Europe.
Solarcentury’s mission is to make solar power mainstream. From homes and commercial rooftops to utility-scale, Solarcentury is making a meaningful difference in the fight against climate change by increasing the accessibility and production of solar power across the world. Over the past 20 years, Solarcentury’s solar projects have generated over 3.5 billion kWh of clean electricity and saved over 1.5 million tonnes of CO2 emissions from entering the atmosphere.
In 2006, Solarcentury helped establish SolarAid, a charity which aims to combat climate change and poverty in the developing world by providing access to solar lights, while helping to eradicate the use of kerosene lamps in Kenya, Malawi, Uganda and Zambia. Solarcentury donates 5% of its net profits to SolarAid, which to date has enabled more than 10 million people across Africa to access safe, clean and sustainable solar light power.
Find more information on the company at www.solarcentury.com/about