Cubico Sustainable Investments Acquires 1 GW Solar Project in Brazil

ERG Spain Holdco, a subsidiary of ERG, a Europe-based renewable energy producer, announced the acquisition of the entire share capital of Instalacion Fotovoltaica Arericsol VIII, which owns a solar project of 25 MW capacity located in Spain., at an enterprise value of €30.4 million (~$32.31 million).

The acquisition is a part of the agreement between ERG and Renertia Gestion Solar II, a company of Renertia Investment, a Spain-based venture capitalist that operates and invests in developing, constructing, and operating renewable energy projects.

The acquired project was built in 2022 by Aerosol and is in the testing and commissioning phase. It is scheduled to start operations in early 2023.

The project is located in the Fregenal de la Sierra area, in the Autonomous Community of Extremadura, known for being the largest solar resource in Europe. It is expected to generate just over 50 GWh of energy.

Once the plant is fully operational, the projected earnings before interest, taxes, depreciation and amortization are about €3 million (~$3.19 million).

The closing of the acquisition is scheduled for the first quarter of 2023, when the plant goes into operation.

ERG was assisted in the transaction by Renergetica as the transaction advisor, ILF as the technical advisor, Ernst & Young as the tax and accounting advisor, and Montero Aramburu as the legal advisor.

ERG CEO Paolo Merli said, “Thanks to the acquisition of the Fregenal photovoltaic plant, of a very high quality, ERG strengthens its presence in Spain, continuing its growth and technological diversification path, in line with the Business Plan.”

In December 2021, ERG, through its subsidiary ERG Power Generation, and GEI Subasta 1, signed an agreement to acquire the entire capital of two project companies under Spanish law. These companies own two operational solar projects in the Castilla de la Mancha and Andalusia regions of southern Spain, with a capacity of 50 MW and 41.6 MW, respectively.

According to Mercom’s 9M and Q3 Solar Funding and M&A Report, in the first nine months of 2022, there were 207 project acquisitions totaling 52.1 GW, compared to 200 project acquisitions totaling 55.5 GW in the same period of last year.