February 11 (Renewables Now) - French energy group Total SA (EPA:FP) on Tuesday said it has entered the Spanish solar market with two deals for the development of projects with a combined capacity of about 2 GW.
The first deal was announced by Madrid-based solar developer Powertis SA last week and Total gave more details today. As part of the agreement, Total Solar International and Powertis are to form a joint venture (JV), in which Total will own 65% and Powertis the remaining 35%. According to Total's statement, the Spanish company will bring to the partnership an initial pipeline of projects with a total capacity of 800 MW, while the JV will develop more projects in the future. The projects will be developed by Powertis and Total will have the right to buy them until February 2021.
As part of the second deal, Total Solar has agreed to purchase a portfolio of solar projects with a total capacity of up to 1.2 GW from Spanish firm Solarbay Renewable Energy. The projects will be located in the regions of Andalusia, Aragon and Castile-La Mancha.
The first projects from the two portfolios are expected to be operational by the end of the year, while the goal is for all projects to be in operation in 2023, according to the statement.
Total will pay success fees to Solarbay and Powertis when certain development milestones are reached, it noted.