Foresight Solar strikes 26.1 MW subsidy-free Spain deal

Foresight Solar 2018 results published: Things looking up

Foresight Solar (FSFL) has this morning announced the acquisition of its first solar asset in Spain. The 26.1 MW Virgen del Carmen asset, based in Huelva, in the south-west of Spain, is the fund’s first acquisition in continental Europe and also represents Foresight Solar’s initial investment in subsidy-free solar. At the date of acquisition, the company’s investments outside the UK represent approximately 12.5% of FSFL’s gross asset value.

Investment is worth €20.2m

FSFL is investing €20.2m once construction is completed and will benefit from a long-term power purchase agreement (PPA) that has been entered with Shell Energy Europe, for the sale of electricity under a fixed price until 2030. The asset is fully consented, with construction expected to start at the end of September 2020, with operations targeted to start in the third quarter of 2021. FSFL is funding the acquisition using its revolving credit facilities.

In sourcing the acquisition, FSFL notes that it has been able to leverage the significant regional expertise of its investment manager, Foresight Group, which through its offices located in Madrid manages an existing portfolio of renewable assets in Spain.

The deal increases FSFL’s installed capacity to 895 MW

Following the acquisition, FSFL’s portfolio comprises 55 assets, based in the UK, Australia and Spain, with an installed capacity of 895 MW.

FSFL notes that it will implement a 10-year rolling EUR/GBP foreign currency hedging strategy covering the future cash flows generated by the asset to eliminate currency fluctuation exposure on returns.

FSFL: Foresight Solar strikes 26.1 MW subsidy-free Spain deal

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