Alternus Energy Group, an independent power producer, has completed a €500 million (~$531 million) financing agreement with Deutsche Bank for funding its solar project acquisitions in Europe.

The funding has an approved initial draw of €80 million (~$85 million).

Other than funding the acquisitions, the financing will also support the closure of currently contracted acquisitions and help finance the construction of up to 600 MW of the development pipeline on a revolving basis.

“Securing this facility will allow us to accelerate our growth initiatives over the next few years. Deutsche Bank is an ideal partner as they share our vision of combatting climate change through the delivery of clean energy assets while maximizing stakeholder benefits in the process,” said Vincent Browne Group CEO.

Headquartered in Ireland, Alternus is an independent power producer that develops, installs, owns, and operates midsized utility-scale solar parks. The company aims to own and operate over 3.5 GW of solar parks by the end of 2025.

Alternus anticipates expanding its current annual recurring revenues of approximately €30 million (~$31.8 million) to more than €200 million (~$212.3 million) by the end of 2025.

The company’s operational portfolio of solar assets, located across five European countries, provided a long-term recurring cash flow generation with approximately €400 million (~$424 million) in lifetime revenues, out of which ~ €172 million (~$182 million) is contracted.

On October 12 this year, Alternus announced the execution of a definitive business combination agreement with Clean Earth Acquisitions, a climate technology, and energy transition-focused special purpose acquisition company. The transaction is expected to close in the first half of 2023.

According to Mercom’s recently announced 9M and Q3 2022 Solar Funding and M&A Report, solar debt financing activity in the first nine months (9M) of 2022 totaled $8.3 billion in 48 deals, 42% lower than 9M 2021 when $14.2 billion was raised in 50 deals.

Last week, photovoltaics leasing firm Enpal raised €855 million (~$908.78 million) from international investors to jointly refinance over 30,000 new solar systems, energy storage systems, and electric vehicle chargers in Germany.