Foresight Solar Fund acquires 26.1MW subsidy-free Virgen del Carmen solar project in Spain from IM2 Energía Solar

Foresight Solar Fund Limited, a fund investing in a diversified portfolio of ground-based solar PV assets in the UK and internationally, announced it has acquired from Spanish developer  IM2 Energía Solar its 26.1MW Virgen del Carmen subsidy-free solar power project based in Huelva, in south-west Spain.

Digitally rendered image of the 26.1MW subsidy-free Virgen del Carmen solar project in Spain. © IM2 Energía Solar.

The project is the latest addition to Foresight’s growing 175MW portfolio of unsubsidised solar assets in the Iberian region, where Foresight’s team in Madrid, led by Carlos Rey, Director of Foresight and Head of Iberia, has identified a strong pipeline of unsubsidised solar projects and is in the process of making further acquisitions in the region.

Construction at the site will start immediately and the project is expected to be fully commissioned in Q2 of 2021. Designed with a single-axis tracker structure to exploit fully the higher irradiation levels achieved in the south of the Iberian peninsula, it will generate around 50GWh of clean electricity every year, enough to power 15,000 homes and making a significant contribution to Spain’s emissions targets.

IM2 Energía Solar will continue their involvement as both EPC (Engineering, Procurement and Construction) and O&M (Operations and Maintenance) contractor.

The acquisition will represent an investment of €20.2 million (£18.0 million) once construction is completed and will benefit from a long-term Power Purchase Agreement (“PPA”) entered with Shell Energy Europe Limited, a subsidiary of Royal Dutch Shell Plc, for the sale of electricity under a fixed price until 2030.

The asset is fully consented, with construction expected to start at the end of September 2020, with operations targeted to start in the third quarter of 2021. The acquisition will be funded using Foresight Solar’s revolving credit facilities.

At the date of acquisition, Foresight Solar’s investments outside the UK represent approximately 12.5% of the gross asset value (GAV) of the company and its subsidiaries. Following the acquisition, Foresight Solar’s portfolio comprises 55 assets, based in the UK, Australia and Spain, with an installed capacity of 895 MW.

Source: Press Release by Foresight Group LLP.