Edisun Power initiates solar strategy turnaround from Spain

It will swap its portfolio of small solar farms for three large projects totalling 941 megawatts

Solar energy producer Edisun Power has decided to change its strategy to focus on large-scale installations. The announcement coincides with the acquisition of three large-scale solar PV plants in Madrid with a combined capacity of 941 megawatts peak, and which will enter the ready-to-build phase later this year.

As part of its new strategy, the Swiss company will dispose of a portfolio of smaller projects, also located in Spain, and totalling a capacity of 706 megawatts peaks. This sale will provide a capital gain of 18.7 million Swiss francs (just over 20 million euros).

Strategic partnership
The new strategic development of the solar PV  portfolio has been unanimously approved by Edisun Power's Board of Directors. Its strategic partnership with Smartenergy Group will enable it to bring the 706 megawatt portfolio to market and acquire the three large Madrid plants in return.

In 2021, the investment, structuring and asset management group for renewable energy production, Smartenergy, also  Swiss, granted an interest-free loan to Edisun, which will now cover the operation. The sales, which will be charged to 2023, will not only generate capital gains, but will also help the company reduce its debt by over 50 million Swiss francs (53.72 million euros).

Connection commitment
As the company points out, the Iberian Peninsula is one of the critical points in Europe for setting up green hydrogen production projects. This circumstance, coupled with grid bottlenecks, makes large solar plants that already have a commitment to connect to the system, as is the case with those now acquired, particularly attractive. This is combined with a strategic location in the metropolitan area of Madrid and a dynamically developing Spanish solar PV market.

The process of optimising Edisun's portfolio will continue through the sale of additional small solar plants with the goal of completion by mid-2025. One of the advantages of the new strategy will be a better alignment of its portfolio with the needs of the capital market and strategic investors. The Board of Directors foresees a gradual and substantial increase in share capital and the issuance of green bonds in 2024 and 2025 to finance the construction of the three Madrid plants. It is also evaluating the possibility of equipping them with an energy storage system that would allow the company to benefit from the volatility of electricity prices through arbitrage sales.

Photo: Edisun Power