Renewable energy developer Fotowatio Renewable Ventures (FRV) and French lender Natixis have closed a project financing deal for a 138MW photovoltaic plant in the town of Solana de los Barros in Extremadura, Spain.
The 64 million euro (US$75.37 million) loan for the San Serván solar facility is the first climate bond certified green transaction in the country, with Natixis acting as underwriter and sole coordinator.
Vigeo Eiris, a provider of ESG research and solutions for investors, undertook the verification against the Solar Criteria of the Climate Bond Standard, which ensures that the loan is consistent with the 2°C warming limit in the 2016 Paris Agreement on climate change. Under the certification, FRV will report regularly on the project’s adherence to key performance indicators (KPIs) defined in accordance with Climate Bonds Initiative guidelines.
The solar plant will generate approximately 291GWh of clean energy a year, which is enough to power 105,000 homes and avoid the emission of 216,000 tonnes of CO2. FRV has signed a power purchase agreement (PPA) with electric utility firm ENGIE Spain, which ensures the funds to support the project.
The facility, scheduled to be fully operational by 2022, will contribute to the Spanish government’s long-term decarbonization strategy, which aims to neutralize the country’s greenhouse gas emissions by 2050.
As part of the project, FRV has partnered with the Solana de los Barros town council to provide local employment opportunities by organizing technical training on the assembly and maintenance of photovoltaic solar installations. The company will also collaborate with IE Foundation to grant a scholarship to a student from the Extremadura region for an undergraduate degree at IE University. A similar scholarship had been presented to a student in Extremadura in connection with another FRV solar energy project in the region.