ERG Acquires 149 MWp Solar Project Consolidating its Presence in Spain

European wind & solar energy major ERG, through its subsidiary ERG Spain HoldCo SLU, has signed an agreement with IBV Solar Parks, BV, a company of the German group ib vogt GmbH which is a leading global utility-scale solar development platform.

ERG said that the agreement is for the acquisition, directly or through a subsidiary, of a 100% stake in Garnacha Solar SL, which is the owner of a solar power plant located in the region of Castilla and León, in north-western Spain.

The official statement of ERG mentioned that the plant will have an installed capacity of 149 MWp and is currently in an advanced phase of construction. ERG expects the commercial operation of the solar farm to be reached by the end of 2023.

The Garnacha solar power plant, equipped with latest-generation bifacial panels and tracker system, will have a load factor of around 22% and an estimated total annual production of around 280 GWh, corresponding to 136 kt of CO2 emissions avoided every year. ERG mentioned that 70 per cent of the electricity generated by the plant will benefit from a 12-year pay-as-produced Power Purchase Agreement (PPA) with a leading corporate counterpart.

The value of the transaction in terms of enterprise value is EUR 170 million, with an equity value of EUR 80.5 million. The transaction is expected to close by the third quarter of 2023, said ERG.

Paolo Merli, Chief Executive Officer of ERG, said, “The acquisition of the Garnacha solar power plant, the largest in terms of capacity in the Group’s renewable portfolio, consolidate our presence in Spain where we will reach 266 MWp of installed capacity by the end of the year, with over 1 GW of under development solar pipeline. Through this transaction, ERG achieves an important positioning in the country, with possible future industrial synergies, as part of the geographical and technological diversification process envisaged in the 2022-2026 Business Plan”.

ERG has pan Europe presence in both solar and wind capacities. With regards to solar energy, ERG operates in Italy, with 175 MW, in France with 79 MW, and in Spain with 92 MW of installed capacity. In Spain, it has two solar plants in operation in the Castilla de la Mancha and Andalusia regions of southern Spain, with a capacity of 50.0 and 41.6 MW, respectively, totalling 91.6 MW.