Project Finance Brief: Cubico to Acquire 274 MW of Solar Portfolio in Spain and Italy

Broad Reach Power acquires 250 MW of solar projects from Invenergy

December 21, 2020


From: Mercom Capital Group

Atlantica Sustainable Infrastructure, the sustainable infrastructure company that owns a diversified portfolio of contracted assets in the energy and environment sectors, has reached an agreement with a subsidiary of Algonquin Power & Utilities, a diversified international generation, transmission, and distribution utility, to acquire a 20 MW solar project with a 15-year PPA in place in Colombia.

Broad Reach Power, an independent power producer (IPP) based in Houston, has acquired a 250 MW solar project located in Montana from a privately-held developer of sustainable energy projects Invenergy and are expected to be online in 2022 and 2023.

The Romanian arm of French electric utility company Engie has completed the acquisition of a 9.3 MW solar PV in the central county of Harghita, Romania. The acquisition is in line with Engie Romania’s strategy focused on developing renewable energies that have a key role in the energy transition. The value of the deal was not disclosed. The photovoltaic farms were put into operation in 2015.

Watson Farley & Williams (WFW) has advised a consortium of international renewable energy companies – NAIAD 2012, Tsk Electronica Y Electricidad, and KB CAPITAL – on the acquisition of SF South. SF South is developing a solar PV in the Ascoli Satriano and Deliceto Municipalities, Province of Foggia (Italy), with a total installed capacity of circa 83 MW. 

Falck Renewables, a renewable energy project developer, announced the purchase of the remaining 30% of Big Fish SPV and Iron SPV from Canadian Solar. Big Fish SPV owns a solar project currently under development in the provinces of Catania and Siracusa, Sicily, for a total capacity of 250 MW. The project, which has secured grid connection and preliminary land rights, has applied for permits and authorizations at the end of 2019. Iron SPV owns a solar project under development in the province of Catania. The total capacity of the project is about 35 MW. The project has secured grid connection and preliminary land rights and has applied for permits and authorizations in June 2020.

BayWa r.e., a renewable energy project developer, announced the sale of its 11.9 MW solar park in Izumi to D&D Solar GK, a new venture set up between Osaka Gas and the Development Bank of Japan. The project is located on a 24-hectare site in the Kyushu Kagoshima Prefecture, was completed, and achieved full operations in April 2020. The two companies will now share 50/50 ownership of the solar farm through the joint venture, with the electricity – enough for 5,000 homes – being sold directly to the grid.

Cordelio Power, a renewable power producer, announced the acquisition of a 150 MW Winfieldsolar project under development in Lincoln County, Missouri. Cordelio acquired the project from a joint venture between Dakota Power Partners and MAP Energy. Dakota will initially provide transition development services for the project, with Cordelio ultimately managing its development as part of its growth efforts in the Midwest.

Renewable energy investment firm Cubico Sustainable Investments (Cubico) has reached an agreement to acquire Grupo T-Solar, a solar power generation platform with assets across Spain and Italy, from I Squared Capital. The platform, which comprises 47 operational assets with a capacity of 274 MW, includes 167 MW of solar PV and 100 MW of concentrated solar power across Spain, and 7 MW of solar PV in Italy. The platform also comes with a solar development pipeline of around 1.4 GW. The total enterprise value of the business is approximately €1.5 billion (~$1.82 billion).

Canadian Solar, a vertically integrated manufacturer, completed the sale of Gunma Aramaki, a 19 MW operational solar project in the Gunma Prefecture in Japan, for JPY6.8 billion (~$64 million). Canadian Solar sold its equity stake in the project to several passive investors in Japan and remained the asset manager and provider of operations and maintenance (O&M) services under a long-term agreement. Gunma Aramaki reached commercial operation in December 2018 and is powered by Canadian Solar high-efficiency modules. The electricity generated is being purchased by Tokyo Electric Power Company at JPY36 (~$0.35) per kWh for 20 years.

Mytilineos, through its renewables and storage development (RSD) business unit, has acquired a 75 MW solar project in Australia from ESCO Pacific. The solar project is Wyalong (75 MW), located in New South Wales, and has secured a high-quality long-term PPA. This acquisition brings Mytilineos Australian portfolio to 290MW, having acquired in 2019 a portfolio of six projects in New South Wales and Queensland, of which three (totaling 120 MW) are currently under construction. PwC and HSF advised Mytilineos on the acquisition.

For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.

Read last week’s project finance brief.

Image credit: Silicon Ranch Corporation


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