The Renewables Infrastructure Group (TRIG) has bought a 49% equity interest in Project Valdesolar, a functioning solar park in the province of Badajoz, Spain.
The company acquired the stake from Repsol, a Spanish-listed global energy firm.
Valdesolar accounts for about 3% of TRIG’s portfolio in terms of value. The acquisition, together with the company’s solar projects in Cadiz, will expand TRIG’s technological and geographic range.
Following the purchase, Spain officially accounts for 8% of the company’s portfolio, with solar PV accounting for 15%.
Valdesolar was developed and built by Repsol, which will continue to own a 51% stake in the project.
Valdesolar has been in service since December 2021, with a total capacity of 264MW which generates sufficient clean energy to power 140,000 households.
InfraRed Capital Partners currently operates as the investment manager whilst Renewable Energy Systems (RES) is the operations manager for the London-listed group.
TRIG will have ‘director representation and significant minority-investor protections’ with its involvement in Valdesolar.
Valdesolar is not supported by government subsidies, and TRIG is currently set to work with Repsol to manage the Project’s vulnerability to merchant energy prices by examining a selection of power price hedging techniques.
The investment manager maintains its cautious approach to incorporating energy price estimates into investment valuations, despite the current increased levels in the wholesale power market, which are not expected to last.
Richard Crawford of InfraRed Capital Partners said “We are very pleased to be partnering with Repsol on this large operating solar project. Projects such as Valdesolar offer a route to improved energy security and decarbonisation of the Spanish energy system.”
“Once the Cadiz solar projects are operational at the end of 2022, TRIG’s solar portfolio will have net generation capacity in excess of 500MW.”