EB-SIM Invests in Spanish Renewables for First Time

German asset manager acquires 50% stake in three PV projects with a total capacity of 99 megawatts

One of the funds managed by EB-Sustainable Investment Management (EB-SIM), a subsidiary of Evangelische Bank, has completed the acquisition of 50% of a photovoltaic project in Spain consisting of three farms with a total capacity of 99 megawatts (pictured: Los Llanos). This is the German asset manager's first investment of this type in Spain.

The project, located in Lorca (Murcia), was built by Solarig using technology from Jinko Solar and Power Electronics. It is capable of producing around 179.25 gigawatt hours of electricity per year, avoiding the emission of at least 14.5 tonnes of carbon dioxide equivalent compared to fossil fuel generation.

Project profitability
EB-SIM acquired this 50% stake from UK investor Foresight Solar Fund Limited, which will retain the other half of the shares. The sale followed a competitive process in which the German group prevailed over other potential buyers. The profitability of the project, which will be commissioned in August 2022, is guaranteed by a long-term private power purchase agreement (PPA).

Foresight Solar Chairman Alexander Ohlsson explained, “After a thorough analysis of our portfolio, we have concluded that these assets are the ideal choice to start our divestment process. This operation is a clear example of our strategy: we acquired Lorca when it was ready for construction. We use the investment manager's expertise to build and commission the facilities. This allows us to realise the full economic benefits for the business. We are now selling a stake at a premium to realise value and invest capital in other opportunities. At the same time, we are retaining exposure to an asset that will continue to provide long-term income and help cover the dividend.”

Ecological and economic return
EB-SIM’s Managing Director and Head of Alternative Assets, Bernhard Graeber, explained how, having established itself in Central Europe, “we are now increasingly turning our attention to Southern European countries,” “Due to the longer and more intense solar radiation, these countries are particularly suitable for photovoltaic projects, with which we aim to achieve both an ecological and an economic return for our investors. We are also supporting the growth of renewable energy infrastructure in a region where such assets are becoming increasingly important.”

Referring specifically to this operation, Graeber said, “The stable framework of the private-sector PPA, the good performance in the first months since the start of operations in August 2022, as well as the German lenders with experience in this sector, were important prerequisites for us for a low-risk investment agreement.”

Photo: Foresight Solar Fund Limited