Foresight Solar Fund Ltd (LON:FSFL), the closed-end investment company with nearly 900 MW of solar assets, has bought a 26.1-MW fully-consented solar project in Spain that will not be subsidised.
This is the company’s first solar acquisition in Spain and in Continental Europe and its first investment in subsidy-free solar, it said in a bourse filing on Monday. The purchase has expanded its portfolio to include 55 assets totalling 895 MW in the UK, Australia and Spain.
The Spanish deal concerns the acquisition of the Virgen del Carmen photovoltaic (PV) project in Huelva, southwestern Spain, which has all required permits in place and is expected to enter construction at the end of this month. Commercial operations are scheduled to be launched in the third quarter of 2021.
The acquisition will represent an investment of EUR 20.2 million (USD 23.9m), once construction is completed. Foresight will finance the purchase with its revolving credit facilities.
Once up and running, the solar park will operate through a long-term power purchase agreement (PPA) with Shell Energy Europe Ltd that will see its output being sold at a fixed price until 2030. Foresight said it will implement a 10-year rolling EUR/GBP foreign currency hedging strategy covering the future cash flows generated by the plant to eliminate currency fluctuation exposure on returns.
(EUR 1.0 = USD 1.185)
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