Ib vogt, a renewable energy project developer, has agreed to sell the 149 MW Garnacha solar project in Spain to ERG, a renewable energy independent power producer. The Garnacha solar power project is located in the province of Zamora in Spain and is currently in an advanced stage of construction.
Commercial operation is expected to begin by the end of 2023, after which ib vogt will provide full O&M services. The transaction for the 100 % stake of Garnacha Solar SL is expected to close by the third quarter of 2023 and represents an enterprise value of 170 million euros (~$188 million).
The project has signed a 12-year pay-as-produced power purchase agreement (PPA) with a multinational corporation for seventy percent of the electricity generated. It covers an area of 224 hectares of land on low-quality soil and will consist of more than 270,000 of the latest-generation bifacial solar modules. Ib vogt has selected a single-axis tracker system with a north-south orientation for optimal performance.
Augusta & Co provided financial advice, and Pinsent Masons provided legal advice for the transaction.
“We are pleased to deliver the Garnacha project to ERG and support them in their efforts to grow and provide more green energy to the Spanish electricity market,” said Anton Milner, CEO of ib vogt. “The Garnacha solar power plant is built to the highest technical standards and developed and planned with close attention to the environmental and social impact. I thank everyone involved in this transaction for their outstanding effort and support. The commitment of the people behind this deal and projects like this allows us to power the energy transition.”
According to Mercom’s Q1 2023 Solar Funding and M&A Report, there were 67 large-scale solar project acquisitions (13 disclosed for $3.6 billion) in Q1 2023, compared to 61 transactions (12 disclosed for $3.2 billion) in Q4 2022.