In July 2024, we acquired a programme of renewable energy assets focused on supporting the anticipated increase in demand for power on the European continent.

The total program size of 248.4MW across nine assets. The programme is split into two deployment legs, the first of which was completed in July and consists of a 59.8MW portfolio of five operating, ready-to-build (“RTB”) and under construction solar and onshore wind generation assets in Spain, Portugal and Sweden, for a total consideration of EUR53m:

  • A 3.7MW operational solar PV plant in Spain
  • A 6MW operational onshore wind asset in Sweden
  • A 20MW solar PV plant under construction in Portugal
  • A 10.3MW solar PV plant under construction in Spain
  • A 19.8MW RTB onshore wind asset in Spain

The second leg consists of funding the construction of four 188.6MW RTB solar PV assets, for a total amount of EUR45m.

The aim of this programme is to continue to support the global energy transition by identifying market dislocations and providing investors with a differentiated return. The three markets targeted in this programme are widely acknowledged to be at the front-end of significant electricity demand in the coming years due to increased electrification of the country, the implementation of aggressive decarbonisation targets and the build out of new energy intensive sectors including data centres and AI technology’s significant demand for power.

  • In Spain, the nationally mandated need to ensure quick penetration of solar and wind generation, the accelerated decommissioning of baseload generation sources such as nuclear power, coupled with a limited interconnection with continental Europe, ensure conditions are aligning to allow investors to secure differentiated returns through pursuing private commercial revenue contracts.
  • Portugal’s decarbonisation strategy centres around electrification and the expansion of renewables as part of the electricity generation mix. As part of its National Energy and Climate Plan (NECP), the country is targeting 80% of electricity generation to come from renewables by 2030 and aims to reach a 47% share of renewables in final energy consumption and 20% share of renewables for transportation. Portugal has set technology-specific renewable capacity targets for 2030 in its latest NECP to guide the expansion of clean energy.
  • Sweden is a global leader in decarbonisation and has targets to cut greenhouse gas emissions by 59% by 2030 compared with 2005 and have 100% renewables in its energy mix. Sweden was the first country to introduce carbon pricing and is one of the countries with highest carbon price in the world, which has proven effective at driving decarbonisation. Major grid upgrades will catalyse market integration and efficiency, alleviating existing bottlenecks in the country and support higher, stable pricing in the long term with higher wind captured prices. The latter is accompanied by increased power demand in North Sweden. A major growth in industrial demand in northern Sweden is predicted, primarily driven by an agenda to decarbonise energy intensive industries by locating these close to cheap sources of renewable energy, such as AI-driven data centres, EV battery manufacturers, and green steel which are expected to increase demand by 19TWh of clean energy.

 

Operating partner

Our operating partner for this programme is Spanish Power SL, a specialised developer and operator established in 1998, with a track record of constructing over 540MW of projects and has developed and sold around 1.8GW of solar and onshore wind projects. Spanish Power SL will own 20% of this programme.

Asset overview

Country: Spain, Portugal and Sweden
Technology: Solar PV & onshore wind
Capacity: 248.8 Megawatts (MW)
Revenue currency: EUR

Investment summary

Committed capital: EUR 53mn
Leverage (D/E): c. 50% LTV