September 17 (Renewables Now) - Encavis AG (ETR:CAP) has signed a 10-year power purchase agreement (PPA) with an unnamed energy company for the output of the 300-MWp Talayuela solar photovoltaic (PV) farm in Spain.
The German solar and wind park operator described the off-taker as having “a strong credit standing, an investment grade credit rating and operations in more than 40 countries” in a press release on Tuesday. Under the terms of the PPA, the unnamed company is to buy a total of 4,300 GWh of power at a fixed price for the duration of the contract.
The Talayuela solar farm, planned for grid-connection near the end of September 2020, is expected to bring in around EUR 25 million (USD 27.5m) of annual revenues from the first full year of operation, Encavis said. The project represents an investment of some EUR 225 million.
Encavis owns an 80% stake in the Talayuela project, while the remaining 20% is in the hands of UK solar company Solarcentury. The new solar farm will be located near the town of Talayuela in the Spanish region of Extremadura.
(EUR 1.0 = USD 1.10)