UK Export Finance guarantees Solarcentury's Spanish projects

London — Solarcentury has secured financing of Eur54.8 million to support construction of 500 MW of solar phototvoltaic capacity in Spain, the London-based developer said Tuesday.

The loans from NatWest and HSBC UK are being guaranteed by export credit agency UK Export Finance.

"UKEF's support will allow Solarcentury to access the working capital and bond support needed to fulfil the contracts," the developer said.

The new funds will go towards construction of two subsidy-free solar farms in Caceres and Alcala de Guadaira.

The 300 MW, Eur228 million Talayuela Solar project in Caceres, Extremadura, is proceeding after Encavis and Solarcentury signed a 10-year power purchase agreement for 75% of the plant's production in September last year.

Project finance of Eur165 million has already been provided by the European Investment Bank and Deutsche Bank. The project reached financial close in November 2019 and is expected to be fully operational in the second half of 2020.

It is forecast to generate around 570 GWh/year.

The 200 MW Cabrera Solar project in Alcala de Guadaira near Sevilla comprises four 50 MW plants. Construction began in July last year and is expected to be completed by September 2020.

Solarcentury sold a majority stake in Cabrera Solar in April last year to an unnamed party. As minority owner Solarcentury will build, operate and manage the plant, which is forecast to generate around 400 GWh/year.

Last year Solarcentury Spain, headquartered in Valencia, said it would create 100 engineering and construction jobs in Extremadura to help build the Talayuela plant.