Project Finance Brief: Ignitis Group to Acquire 80 MW of Solar Projects in Poland

From: Mercom Capital Group
Ignitis Renewables, which owns renewable energy projects in the Baltic States and Poland, has entered into an agreement to acquire 100% of the shares of companies developing 80 MW of solar portfolio in Poland. Estimated total investments amount to around €50 million (~$56.5 million). The projects to be acquired are in various stages of development and likely to be ready for commercial operation in2022 –2023.
The Taaleri SolarWind II fund has acquired a 100% stake in the 50 MW Niebla solar project, located in the Municipality of San Juan del Puerto in Andalusia, Spain. The project is in the ready-to-build stage with an annual production of approximately 107 GWh. The project will produce enough electricity to supply around 28,000 households and offset the equivalent of 36,500 tons of carbon dioxide during each year of operation. Construction is scheduled for December 2021. The project will be operational in the third quarter of 2022.
Abengoa, a Spanish renewable energy company, has completed the agreement with the international energy Group ENGIE to sell its 40% stake in the 100 MW solar thermal project in South Africa. In addition, as part of the agreement, ENGIE Africa also acquires 46% of Xina O&M company, currently in charge of the operation and maintenance of the project. Abengoa remains a shareholder of the O&M company with a 46 % stake.
Innergex Renewable Energy, a developer of renewable energy projects, closed the tax equity funding for the 200 MW Amazon Solar Farm – Hillcrest, located in Brown County, Ohio. All the electricity generated has been sold under a long-term corporate power purchase agreement to an investment-grade rated U.S. corporation. Following the conclusion of the tax equity investment, the project’s long-term capital structure comprises a $74.9 million seven-year term loan provided by a lender group led by CIT Group, a $112.7 million tax equity investment by Wells Fargo’s Renewable Energy & Environmental Finance group and $120.1 million in sponsor equity.
German solar and wind project developer Encavis acquired five solar projects in the Netherlands with a generation capacity of 74 MW from Norwegian renewables company Statkraft. Three solar projects with a total capacity of 50 MW are already in operation. The two other projects will be connected to the grid in the upcoming months. All the projects will benefit from the Dutch subsidy scheme SDE+ for the first 15 years. Statkraft developed and built the projects and will provide operations and maintenance, and long-term asset management services.
Spanish firm EiDF Solar has acquired 75 MW of solar projects located across Catalonia, Murcia, and Navarra, Spain, for consideration of €3 million (~$3.4 million). The projects are in advanced development stages, with construction and commissioning expected to begin shortly. The acquisition helps the firm strengthen its power generation division and expands its pipeline to 860 MW.
Singapore-based renewable energy company Sembcorp Industries, through its 100% subsidiary Sembcorp Energy (Shanghai), has acquired a 98% stake in a 658 MW portfolio of operational wind and solar PV assets from GCN Capital Partners Infrastructure Fund III and its affiliates for RMB 3.3 billion (~$517 million). Located in energy demand centers Hebei, Henan, and Shandong provinces, the assets are contracted and eligible for fixed feed-in tariffs under the China renewable energy policy. The acquisition is expected in the first half of 2022.
Blackfinch Energy, an investor in renewable energy and energy infrastructure projects, acquired the 25 MW Three Maids solar project near Winchester in Hampshire from Enviromena. The project is under construction and is expected to come online by July 2022. The development and construction of the project have been part-funded by Close Brothers Leasing UK, a renewable energy lender. Blackfinch Energy was advised by TLT (Legal) and The Renewables Consulting Group (Technical).
E. Shaw Renewable Investments (DESRI) and Torch Clean Energy announced that they had reached financial notice to proceed on the 75 MW Hunter Solar project, located in Arapahoe County, Colorado. The project was initially developed by Cypress Creek Renewables and acquired in a joint venture between DESRI and Torch. The project has two power purchase agreements, one with CORE Electric Cooperative and Holy Cross Energy, for the project’s total capacity. Fifth Third Bank, National Association (Fifth Third), and National Cooperative Services Corporation (CFC) served as coordinating lead arrangers and lenders for the project’s acquisition, construction, and operation.
For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.
Read last week’s project finance brief.