CMS advises Encavis on signing a long-term PPA and the financing for a subsidy-free 300 MW solar park in Spain

Hamburg – CMS has advised Encavis on signing a long-term power purchase agreement (PPA) and on the financing for a Spanish solar park. The ten-year PPA was concluded with a leading international utility company. The solar park is being implemented without state subsidies. With a planned generation capacity of around 300 megawatts, the plant is one of the largest solar parks in Europe. The facility is located near the Spanish city of Talayuela.

The ability offered by PPAs to realise solar parks via project finance and without state subsidies is a relatively new phenomenon in Europe. It is widely regarded as a key step towards market viability for renewable energy. The electricity price is determined by supply and demand, rather than by regulation. This requires the price to be fixed for a long period in order to gain access to project finance.

An international CMS team headed by lead partners Niklas Ganssauge and Marc Riede advised Encavis AG on all aspects of the PPA and project finance. CMS previously advised on Encavis on the acquisition of the project company.

Encavis AG acquires and operates solar plants and wind farms in Europe and is one of the leading independent players in the sector. The Hamburg-based company employs around 120 people and has a total generation portfolio of more than 1.9 gigawatts. Encavis AG posted sales of EUR 248.8 million in 2018. The company’s shares are listed on the SDAX of Deutsche Börse.

CMS Germany

Dr Niklas Ganssauge, Partner,
Dr Tilman Lorenz Petersen, Senior Associate, both Energy
Dr Marc Riede, Partner,
Carl Werner, Counsel,
Christian Hermanussen, Senior Associate,
Dr Christian J. Schneiders, Associate, all Banking & Finance

CMS UK  

Munir Hassan
Dalia Majumder-Russell
Freddie May
Jason Harding
Kirsty Templar

CMS Spain

Luis Miguel de Dios
Ignacio Ramos Villar
Marta González Araña

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