The European Investment Bank announced it has backed one of the largest ever investments in solar energy in Ireland to support Irish independent power producer, Power Capital Renewable Energy, to bring 1.2GW of solar projects to operation by 2025 and expand internationally.
Power Capital Renewable Energy closed an up to €240 million construction equity facility with a consortium of lenders managed by Eiffel Investment Group including Belgian insurance company Ethias and the European Investment Bank.
The facility has an initial tranche of €100 million. Part of this initial tranche will be used to build assets benefitting from signed Power Purchase Agreements (PPAs) with Microsoft and another undisclosed technology company, with the remainder for assets having been awarded tariffs in the Irish RESS2 auction.
A further €100 million may be made available through an additional tranche to build more assets in Power Capital’s pipeline, while up to €40 million may be made available for international expansion.
Akereos Capital acted as sole bookrunner, structurer and exclusive debt advisor to Power Capital and also acted as exclusive financial advisor to Power Capital on the PPA with Microsoft. Power Capital were advised by Arthur Cox and Philip Lee (legal) while Eiffel Investment Group were advised by Eversheds Sutherland.
Power Capital Renewable Energy, which was acquired by Omnes Capital in 2020, it has gained its reputation as Ireland’s leading IPP through securing a portfolio PPA with Microsoft, and one of the highest amount of MW’s in the RESS-2 auctions for any Irish company.
Justin Brown and Peter Duff, Co-CEOs and Founders of Power Capital Renewable Energy, said:
“It is fantastic to attract a club of such significant investors into the Irish solar sector. We have already commenced construction and expect 230MW to be completed by late this year across counties Cork, Wexford, Louth and Meath. Having the support from Eiffel Investment Group, EIB and Ethias will allow us to rapidly expand our construction roll out over the next years.”
Michael Pollan, Managing Partner at Omnes, said:
“This partnership will allow Power Capital to accelerate its transformation into Ireland’s leading solar IPP at a time when the country is signaling an increasing need for renewable energy. We are thrilled to have Eiffel Investment Group, the EIB and Ethias on board.”
Source: Press release by European Investment Bank (EIB).