Abdul Latif Jameel Energy’s FRV to build new solar plant in Spain, supplying over 90,000 homes with clean energy
- FRV has reached financial close on Carmonita Norte photovoltaic (PV) cluster, the first of three solar plant clusters in which it plans to invest in Extremadura, Spain over the next year.
- The new 123 megawatts (MWp) solar plant will be financed by MUFG, ING and Santander CIB and will cost around 80.9 million euros.
- Once operational, the plant will produce around 260 gigawatt hours (GWh) of clean energy per year and lead to emissions avoidance of around 193,000 tons of carbon dioxide (CO2) per year.
Leading developer of sustainable energy solutions, Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy, has reached a financial close on the Carmonita Norte solar PV cluster in Extremadura, Spain.
With a capacity of 123 MWdc, the Carmonita Norte cluster will be the first of the three projects that the Carmonita node will host. Covering an area of 356 hectares, the Carmonita Norte cluster will produce around 260 gigawatt hours (GWh) of clean energy per year, which is enough to supply energy to approximately 93,600 Spanish homes, while avoiding the emission of around 193,000 tons of carbon dioxide (CO2).
The Carmonita Norte cluster joins several solar photovoltaic projects that the company currently has in Extremadura both in operation (La Solanilla, 50 MWp, and the San Serván 220 cluster, 138 MWp divided into three projects), and under construction (the San Serván 400 cluster, 150 MWp divided into three projects), reaching a total of 461 MWp executed. Together with the solar projects currently under development, the total projects will deliver a forecasted 1.1 gigawatts (GW) in the region in South-West Spain.
For the construction, FRV has reached a financing agreement under the Project Finance modality with MUFG, ING and Santander Corporate & Investment Banking (CIB) for a total amount of 80.9 million euros. Once the plants are operational, the project’s revenues will be guaranteed by a long-term Power Purchase Agreement or PPA.
It is estimated that the first plant of the Carmonita complex will be fully operational by the end of 2023, which will contribute to the Long Term Decarbonization Strategy (LTS) promoted by the Spanish Government, which sets out the path to achieve Greenhouse Gas (GHG) emissions neutrality in Spain by 2050.
Fady Jameel, Deputy Chairman and Vice Chairman of Abdul Latif Jameel, said:
“FRV has made impressive progress in expanding its portfolio of renewable energy projects, not only in Spain, but around the world. This expansion is a testament to our commitment to delivering clean energy solutions in key global markets and we are proud to have the opportunity to bring clean energy to Extremadura while supporting Spain’s broader decarbonization strategy.”
Fernando Salinas, Managing Director of FRV Iberia, commented on the project:
“The financial closing of the Carmonita Norte cluster is great news for FRV, which continues to expand its clean energy portfolio in Spain and, thus, consolidate its role as a leading renewable energy company, as well as for Extremadura, which has unbeatable conditions to host projects that allow clean energy to continue growing, with the positive impact that this has both environmentally and on the local community, generating wealth and employment in the region.”
Stephen Jennings, Head of Energy at MUFG, said: “With the financing of Carmonita Norte cluster, MUFG Bank, Ltd. reinforces its commitment to the financing of renewable energy projects in Spain helping the country to progressively reduce its carbon emissions and achieve its net zero targets by 2050. Congratulations to FRV and all the parties involved for playing a crucial role in the transition towards a low carbon economy in Spain.”
Alfonso Tolcheff, General Manager of Corporate and Investment Banking at ING, stated: “This operation is another step in ING’s sustainable strategy, focused on aligning our loan portfolio with our objectives of keeping the global temperature below 1.5ºC. We are proud to provide financing to companies like FRV that promote a positive impact on the environment and participate in the promotion of projects such as Carmonita Norte to promote green transformation and the use of clean energy in Spain.”
Benoît Felix, Global Head Structured Finance Santander CIB, said: “Santander CIB reinforces its leadership positioning in the renewables sector worldwide and in Spain by supporting FRV in the development of new green energy solutions to accelerate the ESG transition. Congratulations to FRV and everyone involved in the execution of this project.”
All the projects developed by FRV have the Green Financing Framework qualification, which includes green bonds, project finance, green loans and any other financial tool applicable to projects, assets or groups of them.