Alternus Energy, a renewable energy independent power producer, has agreed to acquire up to 228 MW of solar projects in Spain.
Alternus has executed a binding purchase agreement to acquire the projects at ready-to-build (RTB) status. The projects are in mid-stage development and are anticipated to reach the RTB stage during Q2 and Q3 of 2023, subject to permitting and suitable grid connection conditions.
The developer will be responsible for all activities and costs to achieve these milestones prior to closing. The projects are estimated to achieve a Commercial Operation Date (COD) in 2024.
Given the strong positive and predictable cash flows from these projects over the long term, Alternus expects to fully fund the acquisition and installation costs from debt facilities provided at the project level. Alternus’ EPC subsidiary, Unisun Energy BV, will install the projects, and O&M subsidiary, Uper Energy BV, will provide operations & maintenance services.
These projects add to the 35MW Totana solar park acquired by Alternus last year, bringing the company’s Spanish pipeline to 263 MW.
The Totana project is expected to reach RTB in Q4 2023.
“This acquisition again demonstrates our successful local partnership business model that underpins our growth. Spain has one of the most mature solar markets in Europe, with a high level of merchant and PPA projects offering several routes to market for this portfolio and future projects. We look forward to progressing our pipeline of 263MW in Spain to the energization and contributing to the ambitious Spanish solar targets,” commented Vincent Browne, CEO at Alternus Energy.
According to Mercom’s recently published Q1 2022 solar funding and M&A report, large-scale solar project acquisition activity remained strong, with over 23 GW of solar projects acquired in Q1 2022 compared to 13.1 GW in Q4 2021. Year-over-year, 15 GW were acquired in Q1 2021. Large-scale solar project acquisitions in Q1 2022 were the second highest recorded to date.