7th Sep 2020 09:51
(Alliance News) - Foresight Solar Fund Ltd on Monday reported the acquisition of its first solar asset in Spain.
The company, which invests in solar photovoltaic assets primarily in the UK, said the 26.1 megawatts Virgen del Carmen asset, based in Huelva, in the south-west of Spain, is its first acquisition in continental Europe and also represents its initial investment in subsidy-free solar.
The acquisition will represent an investment of EUR20.2 million once construction is completed. The asset's construction is expected to start at the end of September, with operations targeted to start in the third quarter of 2021.
The acquisition will be funded using Foresight Solar's revolving credit facilities, it said.
Following the acquisition, the company's portfolio comprises 55 assets, based in the UK, Australia and Spain, with an installed capacity of 895 megawatts.
The asset will benefit from a long-term power purchase agreement entered with Shell Energy Europe Ltd, a subsidiary of Royal Dutch Shell PLC, for the sale of electricity under a fixed price until 2030.
"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 our first investment in subsidy-free solar," said Chair Alex Ohlsson.
Foresight Solar shares were trading 0.8% lower in London on Monday at 107.11 pence each.
By Evelina Grecenko; [email protected]
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