Foresight Solar, a fund investing in a diversified portfolio of ground-based solar assets, has bought its first solar asset in Spain.
The fund is investing €20.2m to gain the 26.1MW Virgen del Carmen asset, based in Huelva, in the South-West of the country.
Foresight Solar said the asset is fully consented, with construction expected to start at the end of September 2020, with operations targeted to start in the third quarter of 2021.
Once construction of the asset is completed, the asset will benefit from a long-term power purchase agreement entered with Shell Energy Europe, for the sale of electricity under a fixed price until 2030.
Alex Ohlsson, chairman of Foresight Solar, said this acquisition is a milestone in the development of Foresight Solar’s geographically diversified portfolio, representing the fund’s first acquisition in continental Europe and the fund’s first investment in subsidy-free solar.
“With a long-term, fixed-price PPA in place and a high production profile, the acquisition is a clear demonstration of our ability to source and deliver stable cash flows at attractive risk-adjusted returns and marks an important step in Foresight Solar’s international expansion strategy.”
Following the acquisition, the company’s portfolio comprises 55 assets, based in the UK, Australia and Spain, with an installed capacity of 895MW.
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