Innogy SE has now taken the final investment decision (FID) for a solar farm in Spain. The 'Alarcos' project is set to have a capacity of about 50 megawatts and will be operated without state subsidies. Both the beginning of construction and full commissioning of the photovoltaic plant are planned this year.
"We are showing by means of the Alarcos project that new renewable energy sources are possible without the aid of subsidies. We are relying on long-term power purchase agreement contracts for this project. This is not only possible in sunny Spain, but also in many other markets solar energy is competitive. Decreasing prices for the equipment will continue to spur on this development." Said by Hans Bünting, Chief Operating Officer Renewables of innogy SE.
"Thanks to very good solar radiation levels and high demand for renewable energy, the Iberian Peninsula is one of Europe's most emerging markets for solar energy. That's why I am delighted that we are now able to implement a large-scale PV project in this region. And this is only the beginning. We want to build up a substantial solar portfolio and have already secured several other growth opportunities on the Iberian Peninsula." Said by Thorsten Blanke, Head of Solar at innogy SE.
The planned investment volume, including the acquisition of project rights for Alarcos, amounts to about €40 million in total. The Alarcos project was developed by the Spanish company Synergia Energy Solutions, S.L. and 100 per cent of shares were sold to innogy in summer of last year. The contracting parties have agreed to keep the conditions of the transaction confidential, including the purchase price.
The large-scale solar farm will be located to the south of the city of Ciudad Real in the Autonomous Community Castilla-La Mancha. According to current plans, the last pending approvals are set to be made available in the coming weeks so that construction work can begin in early April. It is anticipated that commercial operations will start at the end of 2019. After full commissioning the solar plant will produce enough green energy to supply the equivalent of around 25,000 homes.
Innogy's subsidiary Belectric is responsible for all construction works and will also take on operation and maintenance of the solar farm as a service provider.