The renewables Infrastructure Group (TRIG) has announced that it has acquired a 49% equity interest in Project Valdesolar, an operating solar park in the province of Badajoz, Spain, from Repsol (a Spanish-listed global energy company). Valdesolar represents approximately 3% of TRIG’s portfolio, by value and, following this acquisition, Spain represents 8% and solar photovoltaic (PV) 15% of TRIG’s portfolio.
About Project Valdesolar
Project Valdesolar, which has a total capacity of 264MW, has been operational since December 2021 and generates enough clean energy to power the equivalent of 140,000 homes. Repsol developed and built Valdesolar, and will retain a 51% equity interest in the Project. TRIG will have director representation at the project company and strong minority-investor protections.
Project Valdesolar does not receive any government subsidies and TRIG will work with Repsol to manage the Project’s exposure to merchant power prices by considering a range of power price hedging strategies. With the current elevated levels in the wholesale power market, which are not assumed to persist, the Investment Manager continues its prudent approach to incorporating power price forecasts into investment valuations.
Comments from Richard Crawford, of InfraRed Capital Partners (TRIG’s investment manager)
“We are very pleased to be partnering with Repsol on this large operating solar project. Projects such as Valdesolar offer a route to improved energy security and decarbonisation of the Spanish energy system.
Together with last year’s investment in the Cadiz solar projects, Valdesolar adds to TRIG’s technological and geographic portfolio diversification. Once the Cadiz solar projects are operational at the end of 2022, TRIG’s solar portfolio will have net generation capacity in excess of 500MW.”