Press Release from 2021-01-06 / KfW IPEX-Bank
KfW IPEX-Bank finances 200 MWp solar PV project “Los Escuderos" in Spain
KfW IPEX-Bank has arranged the senior debt financing for the construction and operation of the Los Escuderos solar park near the municipality of Altarejos in the Spanish province of Cuenca. KfW IPEX-Bank is contributing around EUR 64 million to the long-term senior debt.
The Escuderos project is being developed and owned by the Spanish wind and solar company Grenergy Renovables S.A. and will be one of the largest solar parks in Spain. In addition to the construction, the company will also be responsible for the subsequent operation of the four photovoltaic systems, including the associated grid connection infrastructure.
All four plants in the 200 MWp Escuderos solar park are scheduled to start operation in the course of 2021. The project involves the installation of over 342,000 photovoltaic panels with an annual production of 385 gigawatt hours. Thereby it is expected to generate enough energy to cover the annual electricity demand of more than 120,000 households and reduce annual CO2 emissions by approximately 107,800 tons. Upon completion, the 12-year power purchase agreements (PPAs) between the Portuguese energy group Galp and the project companies will enter into force. Once the supply contracts expire, the generated electricity is expected to be sold on the spot market.
A substantial portion of the total investment volume is financed by the long-term senior debt of approx. EUR 96.7 million with a term covering the construction phase plus 17 years. Additionally, the lenders will provide ancillary facilities to support the project. Financing will be provided by a consortium made up of KfW IPEX-Bank and the Spanish Bankinter. KfW IPEX-Bank is the mandated lead arranger of the financing and, in addition to its role as a modelling bank, is also acting as facility agent.
Furthermore, Axis Participaciones Empresariales, a venture capital management company wholly owned by the Instituto de Crédito Oficial (ICO), through Fond-ICO Infraestructuras II, also enters into the financing with a subordinated debt of EUR 12.9 million and the same maturity.
KfW IPEX-Bank’s financing of photovoltaic systems promotes the expansion of the sustainable energy industry in Spain and thus contributes to environmental protection and climate change mitigation. The financing has been validated as a Green Loan under the Green Loan Principles 2018.
About Grenergy Renovables SA:
Grenergy Renovables is a project developer and Independent Power Producer (IPP) that generates energy through renewable sources. Its core business is the development, construction, operation, maintenance and sale of power generating solar photovoltaic and wind energy plants. Founded in 2007 and headquartered in Madrid, the company focusses on projects in Spain and Latin America comprising a project pipeline in excess of 5 GW. Grenergy Renovables is listed on the Madrid Stock Exchange.