Power purchase agreement for 83 MW of Spanish solar

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From pv magazine Spain.

Spanish energy investment firm Sunco Capital has broken ground on two solar plants with a combined generation capacity of 83 MW in the municipality of Manzanares, near Ciudad Real in the southern Spanish region of Castilla-La Mancha.

The electricity produced by the two facilities will be sold to the Shell Energy Europe Limited subsidiary of Anglo-Dutch fossil fuel giant Royal Dutch Shell through a power purchase agreement (PPA), according to Sunco. Construction began yesterday on the two projects which have secured an undisclosed financing facility from Spanish lender Banco Santander.

Completion is scheduled for next year, when the projects will become the first operational assets of Sunco, which has a 2 GW solar project development portfolio spanning Europe and Latin America and which plans to invest €450 million more up to 2022.

The PPA signed by Shell is the second unsubsidized solar electricity supply deal signed in Spain since the Covid-19 crisis unfolded in the country. The EDPR renewable energy division of Portuguese electric utility EDP secured a deal to sell electricity generated by 59 MW of solar and wind power capacity to Dutch multinational Royal DSM last month.

Analyst Bloomberg New Energy Finance has stated – since the onset of the coronavirus pandemic – that the PV project cost of €35.30 per megawatt-hour generated in Spain ensures the country offers Europe’s best market for unsubsidized corporate PPAs.

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