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Forestalia plans 3-GW Spanish wind, solar program

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Forestalia plans 3-GW Spanish wind, solar program

Spanish developer Forestalia Renovables SL plans to install 3 GW of wind and solar capacity in the Teruel region over the next four years, close to one of Endesa SA's coal-fired power stations scheduled to close next year.

The company is to invest €2.4 billion across 66 sites, with the capacity broken down into 1.64 GW of solar and 1.3 GW wind, it said Sept. 30. A company spokesman told S&P Global Platts that the projects have grid access rights but will still require local authorizations to proceed.

Forestalia will also build a 200,000-tonne-per-year wood pellet plant — near Endesa's 1.1-GW Andorra coal facility — which would be the largest in Spain. The company is already a significant player in the market with a 140,000-tonne-per-year pellet plant in Zaragoza and a 40,000-tonne-per-year site in Burgos.

The renewables additions would boost Forestalia's portfolio to 5 GW, it said. The company was one of the largest winners in the 2016 and 2017 Spanish renewables auctions with nearly 2 GW awarded — made up of 1.5 GW of wind, 316 MW of solar and 108.5 MW of biomass.

In July, the company sold off 700 MW of its wind projects to Repsol and Danish fund Copenhagen Infrastructure Partners.

Of the remaining capacity, the company said the 300-MW Goya wind project was "in a very advanced stage" having signed a 12-year power purchase agreement with France's Engie SA. A second wind project, the 342-MW Phoenix, was also progressing, while the 50-MW Bierzo biomass plant was 85% complete.

A company spokesman said Forestalia was close to completing the sale of a 297-MW portfolio to a subsidiary of BP PLC. The deal could be signed this week, he said.

Henry Edwardes-Evans and Gianluca Baratti, who contributed to this article, are reporters with S&P Global Platts. S&P Global Market Intelligence and S&P Global Platts are owned by S&P Global Inc.