Abdul Latif Jameel Energy’s FRV to build three solar plants with financing from European banks BBVA & Natixis
- FRV will build three solar plants at its San Serván complex in Extremadura, Spain.
- FRV secured 89 million euros in financing for the project from European banks BBVA and Natixis under the project finance modality.
- The plants will have capacity to supply around 108,000 homes with clean energy and avoid the emission of 223,000 tons of carbon dioxide (CO2), per year.
- The project strengthens FRV’s global portfolio of solar energy projects.
Fotowatio Renewable Ventures, part of Abdul Latif Jameel Energy and a world leader in the development of sustainable energy solutions, has reached a financing agreement with European banks BBVA and Natixis for the construction of the San Serván 3, 4 and 5 solar plants, with a total capacity of 150 megawatts (MW), to be built in the municipality of Mérida, Extremadura.
FRV secured 89 million euros in financing for the project under the project finance modality, divided equally (44.5 million euros) between the banks.
The San Serván complex will produce around 300 gigawatt per hour (GWh) of clean energy per year, which is enough to supply around 108,000 homes and avoid the emission of 223,000 tons of carbon dioxide (CO2).
The project adds to FRV’s impressive pipeline of renewable energy projects in Spain and across the globe, which align with the energy company’s growth strategy.
Once the plants are operational, revenues from the project will be secured by a long-term Power Purchase Agreement (PPA).
The plants will be fully operational as of the first quarter of 2023, which will contribute to the Long Term Decarbonization Strategy (LTS) promoted by the Spanish government, which sets the path to achieve Greenhouse Gas (GHG) emissions neutrality in Spain by 2050.
BBVA and FRV, sustainable partners
The financing agreement between BBVA and Fotowatio Renewables Ventures (FRV) is part of the strategy that both companies have in place to support the transition to a more sustainable world. As a result of the close relationship between the two parties for more than a decade, a €60 million green line of guarantees was subscribed in 2019.
FRV is currently developing a broad portfolio of projects in Spain, with a pipeline of 3GW spread over four Spanish regions, focused on Andalusia and, mainly, Extremadura, where it has managed to create one of the largest operational portfolios of photovoltaic energy.
Fernando Salinas, Managing Director of FRV Iberia, commented on the project:
“We are very pleased to announce this agreement with BBVA and Natixis, which will allow us to meet part of the energy needs of the local community”.
Fady Jameel, Deputy President and Vice Chairman of Abdul Latif Jameel, said:
“Abdul Latif Jameel Energy’s FRV has made impressive progress in expanding its portfolio of renewable energy projects not only in Spain but worldwide. This expansion is also demonstrative of our commitment to delivering clean energy solutions in key global markets. We are proud to have the opportunity to contribute to Extremadura’s long-term access to clean energy while supporting Spain’s broader decarbonisation strategy.”
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.
The agreement also includes a new ‘FRV Young Talented Leaders‘ scholarship, in collaboration with the IE Foundation, thanks to which a student from Extremadura will have the opportunity to study at IE Business School Madrid. This educational initiative aims to promote positive social change by supporting the progress of education in the region.