Enlight reaches financial close for 312 MW wind farm in Spain

Enlight Renewable Energy has completed the project financing for the 312 MW Gecama wind farm in Castilla La-Mancha region of Spain with Banco de Sabadell and Bankia, which specialize in financing renewable energy projects.

The project, scheduled to reach commercial operation in 2022, is expected to generate average annual revenues of EUR60 million (US$67.4 million), provide clean energy to approximately 260,000 Spanish households, and prevent emissions of approximately 150,000 tons of CO2 annually.

The senior debt, which will account for 50% of the total project cost, estimated at EUR320 million (US$360 million), is provided to the project company as a non-recourse loan. The senior debt will be repaid over the first 14 years as of commercial operation date.

Enlight will hold 72% ownership of the project company and will provide the project company with EUR115 million (US$129 million), with the rest of the capital being completed by the remaining project partners, Phoenix and Menora Mivtachim.

The agreement enables the project company to sell electricity on a full merchant basis.

Enlight signed a wind turbine supply and installation agreement with Nordex SE, which will supply turbines with a total capacity of about 312 megawatts. In addition, the company signed a 20-year full-service agreement with Nordex, which will be responsible for sourcing and supplying of all spare parts and maintenance services.

The company has also entered an agreement with Elecnor which will construct the civil and electrical infrastructure for the project.

Enlight advisors in the Gecama project are Clifford Chance and Cuatrecasas (legal advisory), ATI Consultants (engineering advisory), Deloitte (financial advisory), Neolas Ingenieria (development advisory) and FRC (insurance advisory).

The lender's advisors in the funding process are Watson Farley & Williams (legal advisory), DNV GL (technical advisory) and Marsh (insurance advisors).