The European Investment Bank (EIB) may finance one of the largest “unsubsidized” PV projects under development in Spain, the 300 MW Talasol project, planned for the municipality of Talaván near Cáceres, in the southern region of Extremadura.
The announcement was made in a press release by the project developer, Israel-based Ellomay Ltd., which added the EIB is constantly providing information on the pipeline of projects it is appraising or negotiating and publishing details on its public register of environmental documents –such as its environmental and social data sheets (ESDS).
Ellomay said Deutsche Bank AG has been mandated to structure non-recourse senior debt financing for the Talasol project, and that financial close is expected in the fourth quarter. Ellomay stated the debt financing will be backed by a financial hedge covering 3,500-3,700 GWh of power over a 10-year period, which it announced in late January.
The Talasol PV plant is the largest solar project being developed in Spain outside a national auction scheme. The project, expected to be connected to the grid in 2020, was conceived to sell power to the spot market.
Ellomay bought the Talasol project through a share-purchase agreement for €10 million ($11.75 million) in May 2017. Two months later the developer obtained approval for the project from Spain’s Ministry of Energy, Tourism and the Digital Agenda. Ellomay has previously said – depending on the EPC agreement – the capex, including development costs and interest, was expected to be approximately €225-255 million.
Several similar projects are being planned in southern European countries such as Spain, Portugal and Italy. Different business models are being defined for this challenging business landscape, with three options emerging as viable solutions: the sale of electricity to a power trader through a PPA; sale of electricity to the spot market; and a combination of the two.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.