The UKEF has supported a UK based solar energy company with a finance guarantee which will allow the construction of two solar plants in Spain.
Solarcentury will receive £47.6M of financing, allowing the company to develop two of the largest solar plants in Spain, further demonstrating the UK’s leadership on climate change. Together, the developments will generate enough energy to power more than a quarter of a million homes each year with renewable energy.
The new banking facilities comprise a £24.7M trade loan facility from NatWest and a £22.9M guarantees line from HSBC UK, with both sources of funding supported by UK Export Finance (Read more about UKEF’s work here). UKEF’s support will allow Solarcentury to access the working capital and bond support needed to fulfil the contracts.
The 300MWp Talayuela Solar project in Cáceres, Extremadura, will be one of the largest solar projects in Europe when it is fully operational in the second half of 2020, capable of producing enough energy to power 150,000 homes every year
While the 200MWp Cabrera Solar project in Alcalá de Guadaira near Sevilla, comprising four 50MWp plants, which are expected to be completed and connected to the grid by September 2020, producing enough electricity to cover demand from 105,000 households in the region.
Solarcentury, headquartered in London, has been selling renewable energy solutions for 21 years. The company’s continued focus on its overseas business strategy means that exports now account for 90% of all sales.
There are now approximately 400,000 people working in green collar jobs in the UK, increasing the national income while reducing emissions. This could climb to two million by 2030.
Neil Perry, Chief Financial Officer of Solarcentury, said: “This announcement is testament to the strength of our business, Solarcentury’s unrivalled experience in developing and building large-scale infrastructure projects globally, and the significant investment potential of subsidy-free solar in Europe.
“With the project financing in place alongside these new facilities, construction has now begun on the landmark Talayuela project. Together with Cabrera Solar, where building commenced in July, these are two of the largest solar energy generation plants ever to be developed in Spain and among the most important in Europe, generating employment, respecting the environment and boosting the regional economy.”
Louis Taylor, Chief Executive of UK Export Finance, said: “We’re seeing an increasing number of renewables projects around the world, and this deal highlights the strength of the UK’s offer.
“We’ve worked with the banks to ensure Solarcentury has the level of support required to deliver these two substantial solar projects. UKEF’s support highlights that UK companies are well placed to win overseas contracts and exports in renewable and clean growth projects.”
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