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Spain-based FFNEV holds a 2.1 GW development pipeline and is also participating in floating offshore wind development in the region. The funding will help the company reach its target of installing 1.6 GW of new solar and storage sites in Spain and Portugal by 2030. The move compliments Octopus Energy’s existing businesses in Spain, which include a retail electricity provider that offers customers 100% green energy tariffs, as well as solar services company Solger Energy, which seeks to complete more than 80,000 household solar installations in Spain by 2027. The investment marks Octopus Energy’s entry into Portugal and will help the company accelerate its expansion into new European countries and Latin America, in the future.
Octopus Energy made the investment through its €220mn Octopus Energy Development Partnership (OEDP), a fund launched in Aug’22 with a focus on investing in early-stage assets. Since launch, the fund has invested in UK-based battery storage developer Exagen, and entered the Italian renewables market through a partnership with Nexta Capital Partners, to build 1.1 GW of new onshore wind, solar farms, and energy storage assets in the south of Italy by 2025.
Over the last few years, the Iberian countries of Spain and Portugal have emerged as two of the hottest markets for renewables investments in Europe, driven by ambitious government targets and a host of macroeconomic tailwinds. Spain currently has 15 GW of installed solar power, with a target to increase the share of renewables in its power mix to 74% by 2030. Meanwhile, Portugal currently has ~2 GW of installed solar capacity and seeks to reach an 80% share of electricity from renewable sources by 2026. Stable power prices, a diversified supply of gas, high solar irradiation levels, and good availability of land are some of the factors that make the Iberian region, particularly Spain, favorable for long-term power purchase agreements (PPAs).
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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