October 9 (Renewables Now) - German solar and wind park operator Encavis AG (ETR:CAP) has acquired a subsidy-free 300-MWp solar power plant in Spain that is being developed by UK-based partner Solarcentury.
The facility will be built near the town of Talayuela, with completion scheduled for the end of the first quarter of 2020. It got an environmental impact declaration from Spain's Ministry for Ecological Transition in August.
Encavis said in a statement that the total investment, including project-related debt, is estimated at EUR 225 million (USD 257m). Solarcentury will cover 20% of the investment and will be responsible for the plant’s commercial and technical management upon completion.
The transaction marks Encavis’ entry into the Spanish market and also represents the company’s largest solar plant buy to date. The German firm calculates that the solar park will be generating some EUR 25 million in annual revenues as of the first full year following completion.
Encavis noted that “a highly creditworthy European customer” will be buying the output of the plant at a fixed price over a period of 10 years.
(EUR 1.0 = USD 1.144)