German wind and solar energy company Encavis has signed a ten-year power purchase agreement (PPA) with an undisclosed international energy company for a solar park with 300MW capacity located in Talayuela, Central Spain.
Encavis CEO Dr Dierk Paskert said: “The first long-term power purchase agreement (PPA) signed for a solar park without any support from feed-in tariffs is a milestone for Encavis with a clear signal effect for further contracts of this kind and supports our consistent growth strategy in this market segment
“The conclusion of this PPA and the launch of this park next year will take Encavis to a new level, just as it will stimulate the market for comparable contracts in many countries.”
Encavis will supply 4,300GWh of clean energy to the undisclosed customer. The project will be built with an investment of nearly €225m. Solarcentury, which will be developing the solar facility, will also invest 20% in the project.
Financed by a consortium of banks, the solar park is scheduled to be connected to the grid in the third quarter of 2020.
Encavis anticipates that the facility would generate annual sales of around €25m from the first year of its operation.
In August 2019 Encavis bought a minority stake of 30% in its long-term Operation and Management (O&M) partner, Stern Energy SpA, to boost its technical solar services business.
Over the last few years, Encavis has significantly expanded its portfolio, which consists of a total of 175 solar parks and 69 wind parks in ten European countries with a combined generation capacity of close to 2GW.