EIB to Finance 300 MW Solar Power Project in Spain

EIB has announced that it will invest EUR 76.5 million in one of the largest solar projects in Spain, the 300 MW capacity Talayuela solar power project

The European Investment Bank (EIB), the premier investment institute in the region has made a big mark at the ongoing COP 25 climate conference in Madrid, Spain with announcements of multiple investment decisions. The bank has now announced that it has invested EUR 76.5 million in one of the largest solar projects in Spain at 300 MW, demonstrating its strong commitment in regards to the promotion of clean energy production in the country.

The project is sponsored by Encavis AG, a leading independent producer of renewable energy, and Solarcentury, a global integrated solar power company, and comprises of the construction and operation of a 300 MW photovoltaic solar plant in the cohesion region of Extremadura, more specifically in the municipality of Talayuela. The transaction is supported by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe, also known as the Juncker Plan.

At 300 MW, the plant will be one of the most powerful solar projects in Europe, capable of producing enough energy to power around 150,000 households per year at a very competitive price. Moreover, the project will contribute to reducing CO2 emission by more than 171 kt CO2-e/year and approximately 400 people will be employed during the construction phase. 

EIB Vice-President Emma Navarro, who is responsible for climate action at the Bank and for operations in Spain, said that as shown throughout COP 25, the EIB is highly committed to delivering on the fight against global warming.

“As the EU Climate Bank, we are ready to step up to the challenge. For this reason, we are pleased to support Spain’s huge renewable energy potential and help the country to meet its decarbonisation targets.  Promoting solar energy leads to increasing energy independence and, more significantly, it means reducing the consequences of global warming.”

The EUR 228m project has secured project financing from the EIB and Deutsche Bank for an aggregate amount of EUR 165 million, which reached financial close at the end of November. The Talayuela Solar Plant is one of the first greenfield renewable energy projects to be financed in Spain without any form of government/public support.

The Project entered into a 10-year financial Power Purchase Agreement (PPA) in September 2019, which hedges the off-take price for approximately 75 percent of the volume of the production. Following these developments, Encavis AG has provided Solarcentury with a notice to begin construction of the plant, which is expected to be operational in the second half of 2020.