The figure represents a 30% y/y rise in transacted capacity, with under-development assets accounting for 90% of the volume. The activity was driven by international independent power producers (IPPs) and utilities seeking to expand their portfolios in the country, primarily due to the low and stable domestic power prices as a result of the price cap on gas used in conventional power plants. This has prevented Spain from experiencing the energy price volatilities that were observed across western Europe in 2022, allowing projects in the country to lock in long-term PPAs and secure financing with relative ease. Additionally, the Spanish government’s decision to streamline the permitting process for projects below 150 MW of capacity has halved the time required to secure permits, further reducing the risks associated with project development in the country.
Recent deal: French utility ENGIE has acquired a 182 MW solar PV portfolio in Spain from Greenalia. The projects are located in the Galicia and Andalusia regions and are currently in the development stage, with commercial operation scheduled for 2025. The deal is part of ENGIE’s global objective of increasing its renewable capacity by an average of 4 GW per year during 2022-2025. The company already operates ~1.6 GW of renewable capacity in the country, of which the majority is wind.
Other significant transactions: Oil and gas major Shell recently acquired a 3.1 GW solar portfolio in the country in two separate transactions from Isemaren and Green Tie Capital. Other major deals by foreign players include Verbund’s purchase of a ~4.8 GW portfolio from Q-Energy, China Three Gorges’ acquisition of ~720 MW from Nexwell Group and Aldesa, and Aquila Capital’s takeover of a 500 MW development pipeline from Viridi RE.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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