ERG, the Italian renewable energy company, has announced the acquisition of Garnacha Solar, the owner of a 149MWp solar project located in Castilla and Leon, Spain. The farm is currently in an advanced phase of construction and is expected to reach commercial operation by the end of 2023.
Equipped with latest-generation bifacial panels and tracker system, the Garnacha solar power farm will have a load factor of around 22% and an estimated total annual production of around 280GWh. Additionally, 70% of the electricity generated by the plant will benefit from a 12-year pay-as-produced power purchase agreement (PPA) with a leading corporate counterpart.
The enterprise value of the transaction is €170m, with an equity value of €80.5m euros. The acquisition is expected to close by the third quarter of 2023. This move is set to consolidate ERG's position in Spain, where it is set to reach 266MWp of installed capacity by the end of the year.
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Paolo Merli, ERG CEO, expressed his excitement at the acquisition, saying, “The acquisition of the Garnacha solar power plant, the largest in terms of capacity in the group's renewable portfolio, consolidate our presence in Spain where we will reach 266MWp of installed capacity by the end of the year, with over 1 GW of under development solar pipeline. Through this transaction, ERG achieves an important positioning in the country, with possible future industrial synergies, as part of the geographical and technological diversification process envisaged in the 2022-2026 Business Plan.”
With ERG's recent acquisition of Garnacha Solar, the company is set to make significant strides in Spain's renewable energy market. As the world continues to shift towards sustainable energy, companies like ERG are leading the way by investing in innovative technologies and expanding their portfolio to include more renewable energy sources.
