Spain is the largest European producer of renewable energy, second to Germany. The Spanish market for Renewables had been stagnant since 2011 and with the strong economic recovery, Spain is now implementing it´s 2020 objectives, set by the EU.
To accelerate the pace of renewable project development, the Spanish State recently launched three rounds of auctions in January 2016, May 2017 and July 2017, attributing over 8 GW of solar PV and onshore wind projects. These projects, awarded through the auctions, benefit from a priority treatment by the administration for building and environmental permits and grid connection. The Spanish State also guarantees a minimum price of ca. EUR 37 per MWh produced. To achieve bankability, the projects require the signing of long term PPA (Purchase Power Agreement) that can be obtained from utilities and corporate off-takers.
Spain is well suited for both wind and solar resources. Due to sparsely inhabited countryside projects tend to be large and local population supportive. These projects benefit from very good wind and solar resources, some of the best locations are available for these projects.
Prime Capital is well positioned based on the experience in structuring large-scale projects and optimising complex multi-layer contracts. Prime has access to an attractive pipeline through various sources i.e. bilateral access to developers, banks and turbine manufacturers. Attractive financing terms are available to Prime through German and local banks and by the European Investment Bank.