Baywa r.e., the renewable energy arm of German agricultural and industrial conglomerate Baywa, has secured a 15-year PPA for its 170 MW Don Rodrigo solar park, which is currently under development in Alcalá de Guadaíra, Andalusia, southern Spain.
Baywa said that preliminary work on the facility has already begun, and that construction and grid-connection will be finalized by the end of this year.
The solar park, planned to be deployed on a 265 hectare surface, is expected to generate around 300 GWh per year and to cover the annual consumption of around 93,000 households. “The fact that we can implement such a project completely without government susbidies is due, in particular, to the constant optimization of system costs,” said the energy director of Baywa, Matthias Taft.
“Statkraft brings together electricity producers and companies from trade and industry throughout Europe and develops new concepts that offer added value for both sides,” said Hallvard Granheim from Statkraft. “Our customers profit from our decades of experience in the supply of renewable energies at long-term predictable and competitive prices,” he added.
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No information about the power purchase price, however, was disclosed by either company. As pv magazine reported in January of last year, the plant may sell power at around €0.038/kWh.
This is the third PPA for large-scale solar announced in Spain since the business for big solar parks regained momentum. In late March, Spanish renewable energy developer, Cox Energy secured a long-term PPA for 660 MW of solar power from Spain’s power distributor, Audax.
Spain’s first solar PPA was announced by British firm, Foresight in late December, while in Portugal, the first 10-year PPA for a 10 MW solar project was signed in early January.
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Subsidy-free solar at prices below any carbon-based generator is surely the beginning of the end for fossil fuel power. The end of the end comes when effective cheap energy storage joins the mix.