BayWa r.e., a renewable service provider, energy developer and distributor, secured €32.5 million (~$34.67 million) financing for a 54 MW solar project in Spain.
The Alhendín solar project is currently under construction and is scheduled for completion at the end of June this year. Once connected to the grid by the end of 2023, it is expected to generate 96.8 GWh of renewable energy each year, equivalent to the electricity consumption of approximately 24,700 Spanish households.
The project is part of two long-term PPAs signed by BayWa r.e. and VELUX Group, which includes the construction of another solar park in the Seville region, also in Andalusia. Both facilities will enable the world-leading roof window manufacturer to power 100% of its European operations with renewable energy by 2024.
Heiko Ludwig, Global Head of Structured Finance at NORD/LB, said: “We are very pleased to support BayWa r.e., one of our long-standing clients, in this innovative and outstanding project. This is another great opportunity to strengthen our cooperation with BayWa r.e. through financing a photovoltaic project, this time in Spain, and to demonstrate that we are a reliable partner thanks to our experience in financing renewable projects worldwide.”
Rafael Esteban, Managing Director of BayWa r.e. Projects España S.L.U., commented: “NORD/LB has been one of our strongest partners for years. Therefore, We have decided to rely on them to finance one of our most ambitious projects in Spain and Europe. The Alhendín solar project, with all its innovative and pioneering aspects, is yet another example that Spain has much to contribute to the global renewable energy market. That is why BayWa r.e. is unwavering in its commitment to continue contributing to the energy transition in Spain, and this agreement is essential to make further progress towards this goal.”
According to Mercom’s Q1 2023 Solar Funding and M&A report, large-scale project funding came to $5.3 billion in 62 deals, a decrease of 46% compared to $9.8 billion in 52 deals in Q4 2022.
