Encavis AG announces acquisition of largest solar project in the company's history

Encavis AG has announced that it has acquired the largest solar park in its history. With a generation capacity of roughly 300 MW, the park is located near the Spanish town of Talayuela, Cáceres province, Extremadura.

The acquisition is part of Encavis' 1.1 GW strategic partnership with British project developer and operator Solarcentury. The project was initially developed by Kompa Solaire SASU and Genia Global Energy Solutions, S.L.

The total investment including the project-related debt capital amounts to roughly EUR225 million (US$258.3 million). Solarcentury will bear 20% of the investment and be in charge of commercial and technical management of the park.

The plant is scheduled to be connected to the power grid at the end of the first quarter of 2020. It is going to be able to generate enough electricity to meet the needs of around 150,000 homes each year.

The price for the electricity generated by the photovoltaic plant in Talayuela will be secured by a highly creditworthy European customer at a fixed price over a period of ten years. The project will be financed by a renowned syndicate of banks.

Encavis expects the plant to generate revenues of around EUR25 million (US$28.7 million) per year as of the first full year of operation. The investment will significantly increase the average yield of Encavis' total portfolio.

The transaction is subject to the usual market conditions precedent.