Spain recorded 12.2 GW of utility-scale solar acquisitions in 2022, ~90% of which targetted under-development projects. Enerdatics understands that the activity is driven by the low and stable power prices in the country, primarily due to the price cap for natural gas used in power generation, decoupling volatility in gas prices from electricity prices. This has incentivized off-takers to lock in long-term supply contracts for renewable energy, guaranteeing developers with stable cash-flow and facilitating easier access to capital for project financing. Further, the Spanish government implemented new guidelines in 2022 that shorten the permitting process for renewable energy projects below 150 MW of capacity, halving the time required to secure permits.
Recent Deal: ERG has acquired the 149 MW Garnacha solar farm in the Castilla e León in Spain from ib vogt for a consideration of $188mn. The project is in advanced stages of development with 70% of the output contracted under a 12-year corporate PPA with Google.
Other Significant Transactions: Norges Bank’s $650mn acquisition of ~1 GW of solar assets represents the largest transaction for a PV portfolio in Spain YTD 2023. Other major players include NextEnergy Capital, Foresight Group and Amarenco Group.
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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