Summary sheet
Construction and operation of five photovoltaic (PV) plants for a peak capacity of 230 MWp in the municipalities of Budia, Durón, Cufuentes and Trillo (Guadalajara) and Toro (Zamora).
The project comprises the construction and operation of fifteen solar PV plants and their grid connection facilities with a total capacity of c. 736 MWp. The plants are located in the Spanish regions of Castilla y León and Castilla-La Mancha. Out of the fifteen plants, seven are organised in a cluster of 338 MWp, three are organised in a cluster of 150 MWp, one plant of 50 MWp is part of a larger cluster of 138 MWp, and the four remaining plants are not part of any cluster. Once in operation, the project is expected to generate around 1.3 TWh per year.
The project increases renewable energy generation capacity in Spain and contributes to national and EU 2030 climate objectives. The financing of this project is in line with the Bank's lending priority objectives on Renewable Energy as well as on Climate Action, Environmental Sustainability and Social and Economic Cohesion. The project produces electricity from low carbon sources (solar PV plants), addressing the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and other air pollution (compared to fossil-fuel generation). As the project is expected to rely on revenues from the market (the wholesale market and unsubsidized commercial Power Purchase Agreements), in a sector characterised by incomplete markets (limited forward/hedging, lack of scarcity pricing and lack of locational pricing), the project improves market efficiency and competition. The project components are located in EIB Cohesion Priority regions.
The Bank will provide a meaningful part of the total financing needs for this Project (58.33% of the debt, a percentage higher than the standard 50% in Project Finance transactions), enhancing the overall financial viability through improved economic conditions compared to commercial lenders.
The partial exposures of Project revenues to merchant risk implies the structuring of an innovative and riskier financing, which deters many potential co-financiers from participating. As a result, the EIB will be acting as cornerstone lender and thus crowding-in other lender(s) into the financing structure, which, alongside the structuring advice provided, is expected to improve the probability of a timely financial close.
The plants and most of the ancillary infrastructure fall within Annex II of the EIA directive (Directive 2014/52/EU amending the EIA Directive 2011/92/EU) and have been screened in by the competent authority. A combination of four new 220 kV transmission lines will connect the three clusters mentioned above to the existing network, and falls under Annex I (with a total length of ca. 42 km). All project components have therefore been subject to an environmental impact assessment (EIA) process, including public consultation. Twelve out of the fifteen plants and associated infrastructure have obtained their environmental permits (Declaración de Impacto Ambiental - DIA) in the course of 2021, and the three remaining are undergoing their EIA processes, with the Promoter expecting to obtain the permits in the course of 2022. The plants and associated infrastructure are located outside Natura 2000 sites. The authorisation procedure and compliance with the relevant EU directives, including Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively), will be further assessed at appraisal, in particular the potential cumulative impacts assessments and the impacts on protected flora and fauna, including Natura 2000 sites.
The Promoter has been assessed by the EIB as being a private company not 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 EU public procurement legislation then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.