Enhol closes financing of PPA-backed Spanish wind farms

Spanish renewables developer Grupo Enhol has closed the financing of two PPA-backed wind farms.

The two sites, Ablitas II and Cabanillas II, are located in the Ribera de Navarre area in the north of Spain, and have a combined capacity of 90MW. They will feature 27 turbines and are currently under construction.

The projects have an estimated final capex of €86 million (£76m US$97m) with two Spanish banks, Bankia and Banco Sabadell, providing 50% each of the long-term debt required to fund the wind farms, the total of which was not disclosed.

Grupo Enhol expects to complete construction on the projects and connect the wind farms to the grid by the end of September 2020.

PPA

In the summer of last year [2018], Grupo Enhol signed what is thought to be the first Spanish 20-year power purchase agreement (PPA) for the two wind farms.

The deal was signed with Spanish utility Factorenergia and will see the company buy energy from the Ablitas II and Cabanillas II sites at a fixed price.

As the two wind farms do not form part of Spain’s auction system and will not receive any remuneration based on their production, their demand will be guaranteed through the PPA rather than a state utility company, ensuring cashflow.

For Factorenergia, the agreement with Enhol marks a second significant milestone in its history, after it became the first company in Spain to have obtained a license from the industry ministry when Spain’s markets liberalised.

Bankia and Banco Sabadell.

 

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