ENGIE signed with Forestalia, General Electric and Mirova an innovative agreement to develop nine subsidy-free wind farms with a total capacity of 300 MW, awarded at the first Spanish renewable generation auction in 2016.
ENGIE in Spain participates in this project with a multi-facetted profile, being at the same time energy manager, long term purchaser, constructor and shareholder.
The shareholders of the project are Mirova, a subsidiary of Natixis dedicated to responsible investment (51%), General Electric (25%), ENGIE (15%) and Forestalia (9%). The total investment of the project will reach €300 million and will be covered among others by equity funds and by external financing. The European Investment Bank provided a €50 million loan in the framework of the “Juncker plan”.
For the civil works and for the electrical installations of the new wind complex, ENGIE created a joint venture (50%) with Acciona Industrial (25%) and Copsa (25%).
In addition, ENGIE, as a green midstreamer in Spain has signed a 12-year Power Purchase Agreement (PPA), to buy at a large part of the electricity generated by the future nine wind farms in the province of Zaragoza. This green PPA guarantees the economic viability of the project.
This marks a new milestone in the Spanish energy market as it is the first PPA to be signed for wind farms under development in the country.
“The PPA is a tailored-made contract which is changing relationships within the energy market. This project is completely innovative in our country”, says Loreto Ordóñez, CEO of ENGIE Spain. “ENGIE bets on this model to ensure that everyone, producer, client or marketer, will benefit from a more efficient management and from more certainty on their market risks. In addition, this certified energy comes from renewable sources, very demanded by socially responsible companies. This is our contribution to harmonious progress”.
With a portfolio of 4,8 GW in wind, including 3,4 GW in Europe, and 1,3 GW under construction worldwide (at 31/12/2017, figures at 100%), ENGIE reaffirms its commitment to ever cleaner energy for its customers.