Foresight Solar Fund Limited (“Foresight Solar” or “the Company”), a fund investing in a diversified portfolio of ground-based solar PV and battery storage assets in the UK and internationally, is pleased to announce that it has entered into a 10-year Power Purchase Agreement (“PPA”) over the electricity to be generated at the Company’s 98.5MW solar portfolio in Spain.
The counterparty to the PPA is Statkraft, Europe’s largest producer of renewable energy, developing, building and operating solar, hydro, wind and gas assets.
The portfolio comprises three subsidy-free greenfield assets located in the Andalusia region of Spain and was acquired by the Company on 31 December 2020. It is on track to begin operations in June 2022.
The PPA provides Foresight Solar with a 10-year fixed price for around 70% of the portfolio’s annual production and increases the Company’s earnings visibility.
Commenting on the PPA, Ross Driver, Director at Foresight, said: “We are delighted to have secured this PPA with Statkraft. It secures an attractive level of contracted revenues for our Spanish portfolio over a 10 year period and represents another significant milestone in the development of Foresight Solar’s international operations.”
Alfonso Martinez, Investment Manager at Foresight, commented “This PPA further consolidates our excellent working relationship with Statkraft and reinforces our strong position in the unsubsidized renewable energy market in Spain.”
The Company has been advised by Osborne Clarke – Madrid Office – (legal) and ONE (strategic PPA advisor).