Dublin’s Greencoat snaps up new wind and solar farms in Spain

1 Aug 2023

The Andella wind farm in Valladolid, Spain. Image: Greencoat Renewables

Based in Ireland, Greencoat Renewables is making the most of Spain’s low costs of electricity production and abundance of wind and solar resources.

Dublin-headquartered energy company Greencoat Renewables has expanded its presence in the European market with the acquisition of the Andella wind farm in Valladolid, Spain.

The 50MW wind farm consists of 10 Siemens Gamesa turbines of 5MW each. Currently under construction, the project is expected to be operational by the second quarter of next year, with operations and management services to be provided by Siemens Gamesa.

While the financial details of the transaction have not been disclosed, Greencoat said the forward sale agreement means that the company will only own the Andella wind farm after it is fully operational.

The latest acquisition announcement coincides with the close of an earlier acquisition of the 50MW Torrubia solar farm in Zaragoza, Spain. Greencoat said the Torrubia deal was signed in December 2020 under a forward sale commitment from London-based Lightsource BP.

Spain is one of Europe’s leading renewable energy markets. Abundant wind and solar resources combined with a relatively low cost of electricity production make the destination fertile ground for foreign investments in the renewable energy sector.

“The combination of low-cost renewable energy and a well-developed corporate PPA (power purchase agreement) market makes Spain a very attractive target for renewable energy investment,” said Paul O’Donnell, partner at Schroders Greencoat, the investment manager.

“As the renewable generation market continues to develop, we expect to see greater opportunity for unsubsidised renewables and believe Greencoat Renewables is well positioned to benefit from this growing opportunity.”

While Greencoat was initially focused on acquiring and managing wind farms across Ireland, it has substantially increased its presence in Europe over the past few years.

In April 2021, Greencoat acquired the Glencarbry windfarm in Co Tipperary, while in February of the same year it entered the Nordic market by acquiring a Finnish windfarm for around €60m.

Last April, it struck a deal to acquire 50pc of German offshore windfarm Borkum Riffgrund 1. The acquisition was announced days after Greencoat raised €281.5m in an oversubscribed round to fund investment plans in Ireland and continental European markets.

Earlier this year, Greencoat announced it had acquired a 22pc stake in the Butendiek windfarm in Germany’s exclusive economic zone in the North Sea. Butendiek consists of 80 Siemens 3.6MW turbines which have been operational since 2015.

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Vish Gain is a journalist with Silicon Republic