Two Spanish group have signed a largest-of-kind power purchase agreement for solar-generated electricity from 660 MW of plants yet to be built in Spain and Portugal.
The companies announced that Spain-based Audax will receive around 1.3 GWh/year from the plants that Cox Energy and an unnamed international partner will develop in the countries by 2020.
Platts reports that 495 MW will be built in Spain and 165 MW in Portugal with more to come in the two countries in terms of PPA-funded solar projects, spurred by the achievement of grid parity according to sector sources.
In Spain alone, 19 GW of plans have been submitted, additional to the 4 GW of existing plants and 4 GW of projects awarded at auction last year, according to Jose Donoso, president of the country’s PV industry lobby group Union Espanola Fotovoltaica.
The companies say this is the largest agreement of its kind signed to date for solar PV production. The companies did not say how long the agreement would cover, although Spanish media reports indicated that it is for 20 years.
The deal follows on from the announcement of the first major PPA signed in Spain earlier this year, between Israel-based Ellomay Capital and an unnamed international energy company, for 10 years of output from its proposed 300 MW PV plant in Caceres.
Cox is set to invest $490m in building the capacity, it said. Building will start this year with the capacity coming online progressively through the course of 2020.
And the Spanish PPA could be the first in a succession of similar agreements between the companies, they said, with the two partners looking to develop similar projects in Italy, France, Germany, Poland and the Netherlands.