Germany-based solar and windfarm operator Capital Stage has entered a strategic partnership with the UK’s Solarcentury to develop 1.1GW solar assets across Europe and Mexico.
Phase I of the new partnership will see Capital Stage receiving exclusive access to Solarcentury solar parks in Europe with a total power generating capacity of more than 360MW.
This move is expected to enable the company to increase its power generating capacity from around 1.4GW to up to 2.5GW.
Capital Stage plans to fund these parks through its existing funding facilities including funds raised in September this year and placement of around €100m hybrid-convertible bonds.
The farms would require an investment of roughly €330m, which includes project-related debt financing.
The partnership is currently planning to develop projects that are able to generate a total capacity of around 484MW of power in Mexico. Auctions for these new parks will be held this month.
All the transactions to be carried out under the latest partnership are subject to a due diligence process by Capital Stage.
In addition, Capital Stage plans to continue to focus on only ready-to-build (RTB) solar photovoltaics (PV) plants that match country-specific internal rate of return (IRR) benchmarks.