Summary sheet
The project consists of the construction and operation of six photovoltaic PV plants in Spain, totalling circa 297 MWp.
The project will contribute to progressing on the national and EU energy and climate goals, namely helping to decarbonise electricity production in the EU and to decrease the reliance on fossil fuels. Some of the plants are located in EIB Cohesion Priority Regions, and contribute to developing less-developed and transition regions.
The project increases the production of electricity from low carbon sources (solar PV) and addresses negative climate and environmental externalities. It contributes to progressing towards the EU and national renewable energy targets of Spain, as set out in the revised 2030 National Energy and Climate Plan (NECP).
The financing of this project contributes to Bank's lending priority objectives on "Sustainable Energy & Natural Resources - Decarbonising Energy Supply (Renewable Energy)", as well as on the transversal objectives of Climate Action (mitigation), Environmental Sustainability (Pollution Prevention Control) and, partly, economic and social Cohesion (transversal).
The schemes revenues will come from the wholesale market (spot markets and/or PPAs). They thereby contribute to the EIB's Energy Lending Policy objective to support the market integration of RE projects.
The schemes are expected to result in a positive economic rate of return, considering the economic value of the clean and renewable electricity generated and a positive broader social benefit by generating electricity at a cost (LCOE) reasonably below cost alternatives in the Member States. The project is supported by adequate governance and capabilities of the promoter.
A majority of schemes are expected to be located in EIB Cohesion Priority Regions, supporting the strengthening of the EU's economic, social and territorial cohesion.
The Bank's participation is decisive for the structure to be implemented, since the Arranger could only provide a reduced portion of the financing.
The EIB will bring along its expertise in such structuring, coupled with some financial advantage during the operational phase of the project, while offering a rather long tenor for a project financing with merchant exposure, even benefiting from price hedging mechanisms.
This project is intended to generate environmental benefits by supporting ground based solar PV plants that help mitigate climate change. The individual plants and most of the ancillary infrastructure fall under Annex II of the EIA Directive 2011/92/EU amended by the Directive 2014/52/EU. Overhead transmission lines for the interconnection of the schemes to the grid, if falling under the Annex I due to their technical characteristics, will be expected to be subject in all cases to an environmental impact assessment (EIA) process. During appraisal, the Bank will assess the capacity and capability of the promoter to implement the Project and its compliance with applicable EU Directives.
The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would require the promoter to apply those rules.