SOLARIA CASTILIAN PV PLANTS

Promoter – Financial Intermediary

CORONA BOREALIS FOTOVOLTAICA SLU

Location

• Spain

Description

Construction and operation of 5 solar photovoltaic plants with an installed capacity of 252 MWp located in the Spanish regions of Castilla y Leon and Castilla-La Mancha.

Additionality and Impact

The project increases renewable energy generation capacity in Spain and contributes to national and EU 2030 climate objectives. The financing of this project also contributes to the Bank's lending priority objectives in energy (renewable energy), climate action, and economic and social cohesion. Electricity is produced from low carbon sources (solar PV), addressing the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution. As it relies on revenues from the market (the wholesale market and unsubsidized commercial PPAs), in a sector characterised by incomplete markets, the project improves market efficiency and competition. It is expected to yield very good quality and results due to excellent social benefits, fair employment creation and a good ESG rating. The project is supported by the adequate governance and capabilities of the promoter.
Supporting this solar PV project with a meaningful amount of non-recourse project financing will be instrumental in facilitating and accelerating the financial close of a sizable renewable energy investment. The EIB will be acting as a cornerstone lender and thus crowding-in other lenders. The improved economic conditions of the EIB financing combined with structuring advice will further enhance the project's viability, which is deemed crucial in this period of very high economic uncertainty in the context of the ongoing Covid pandemic.

Objectives

The operation will contribute to EU climate and energy objectives. In particular, it supports the EU-wide target of reaching 32% of energy from renewable sources in gross final energy consumption by 2030, as set out in the Renewable Energy (RE) Directive (EU 2018/2001). It also contributes to the national renewable energy targets as laid out in Spain's National Energy and Climate Plan (NECP). The financing of this project is in line with the Bank's priority energy lending related to renewable energy and climate action. In addition, part of the project is located in the Spanish region of Castilla-La Mancha, considered a convergence region under the current cohesion policy criteria.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 68 million

Total cost (Approximate amount)

EUR 157 million

Environmental aspects

The plants and their ancillary infrastructure fall within Annex II of the EIA Directive 2014/52/EU amending the EIA Directive 2011/92/EC (the transmission lines being 132 kV maximum). The Promoter prepared an environmental impact assessment (EIA) study for each power plant and its ancillary infrastructure and submitted them to the competent authorities. All the plants have been screened by the authorities, and are undergoing mandatory EIA process according to local legislation. The Promoter expects to obtain the permits in Q2 2020. The authorisation procedure and compliance with the relevant EU directives, specifically Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively), will be assessed at appraisal, in particular the potential cumulative impacts assessment and the impacts on protected flora and fauna, including Natura 2000 sites.

Procurement

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if after the project appraisal, the EIB were to conclude that the Promoter is after all subject to EU public procurement legislation then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.

Status

Signed - 23/07/2021