Encavis AG has signed a ten-year power purchase agreement (PPA) with online marketplace Amazon. The solar park producing the electricity, La Cabrera, is being implemented without state subsidies. With a planned generation capacity of around 200 megawatts, it will be the company’s second largest solar park in Spain. The facility is being built in Cabrera in southern Spain, in the immediate vicinity of Seville. The plant is scheduled for grid connection at the end of 2020.
The ability offered by PPAs to realise new solar parks via project finance and without state subsidies is still 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, and is guaranteed by the PPA over an extended period to enable the project to be financed.
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’ acquisition of the project company.
Encavis AG is a producer of electricity from renewable energy. It is listed on the SDAX of Deutsche Börse AG. As a leading independent power producer, Encavis acquires and operates solar plants and (onshore) wind farms in ten European countries. These facilities for sustainable energy generation yield stable returns through guaranteed feed-in tariffs or long-term power purchase agreements (PPA). Within the Encavis Group, Encavis Asset Management AG specialises in institutional investors.
Luis Miguel de Dios, Partner
Marta González Araña, Senior Associate
Dr Niklas Ganssauge
Dr Tilman Petersen
Dr Marc Riede
Dr Christian J. Schneiders