RWE, a German power generation company, and PPC, a Greece-based utility company, have signed loan agreements with Alpha Bank, Eurobank, and National Bank of Greece for the construction of a portfolio of solar projects with a total capacity of 730 MWp (691 MWac) in Amyntaio, Western Macedonia, with contribution from Recovery and Resilience Fund.
The projects will be developed by METON Energy, a joint venture of RWE Renewables Europe & Australia (51%) and PPC Renewables (49%), subsidiaries of RWE and PPC respectively.
The first set of funding will be used for the construction of three photovoltaic projects with an installed capacity of 280 MWp (259 MWac). The funding totaling €196 (~$212.68) million will be done with €98 (~$106.34) million from the Recovery and Resilience Fund and with a bank loan of €59 (~$64.02) million, proportionally from Alpha Bank, Eurobank, and National Bank of Greece, through separate loan contracts for each project. METON Energy will participate with €39 (~$42.31) million of equity. The projects are expected to reach operations by the end of the first quarter of 2025.
The second set of funding will be used for the construction of the photovoltaic project “PPC Amyntaio Mine” (project group III) with an installed capacity of 450 MWp (432 MWac). The financing totals €255.4 (~$277.14) million, out of which €127.7 (~$138.57) the Recovery and Resilience Fund resources will cover million, €76.6 (~$83.12) million will be from bank loans in proportion from Alpha Bank, Eurobank, and National Bank of Greece, and €51.1 (~$55.44) million will be covered by METON Energy with equity. The project is expected to be commissioned by the end of 2025.
Bilateral contracts have been signed for the purchase and sale of electricity produced from these projects. A 15-year contract has been signed with PPC for the supply of electricity from the first three projects, while through a 10-year contract, PPC and RWE Supply & Trading (an RWE group company) will purchase electricity produced from the ‘PPC Amyntaio Mine’ project.
According to Mercom’s Q4 and Annual Global Solar Funding and M&A report, large-scale project funding deals announced in 2023 came to $44.5 billion in 229 deals, of which 196 were disclosed. In a YoY comparison, large-scale project funding increased 74.5% compared to the $9.8 billion raised in 52 deals in Q4 2022.
In a recent deal, Primergy Solar, a developer, owner, and operator focused on distributed and utility-scale solar PV and battery storage projects, announced the closure of its $588 million commitments in debt financing for the 408 MW Ash Creek solar project in Hill County, Texas.
