The projects are located in central and southern Portugal and will have an installed capacity of over 170 MWp. Construction of the projects is scheduled for completion by the end of 2018.
Very good conditions at the project sites and the low cost of photovoltaic power systems were key attractions in the transaction for Aquila Capital. In order to mitigate exposure to possible future fluctuations in the price of electricity, Aquila Capital has entered into a power purchase agreement for the power produced by the solar parks with a local third party.
At present, Portugal is heavily dependent on energy imports because of its low levels of fossil energy reserves. The Portuguese Energy Strategy is set to reduce this dependency through an expansion of renewable energy infrastructure. Portugal has so far taken little advantage of its potential to generate electricity from solar energy. Strong solar radiation and the existence of a functioning technical infrastructure means there will be attractive opportunities for further photovoltaic investments in Portugal in the future.
In total, Aquila Capital manages a renewable energy portfolio with a transaction volume of more than 3 billion Euro in 10 countries.
Susanne Wermter, Head of Investment Management Energy & Infrastructure EMEA, Aquila Capital, commented: "Even without state funding support, these projects are a highly attractive investment. With the help of a long-term power purchase agreement, we have been able to secure stable attractive income for our investors."