Foresight Solar declares purchase of the Virgen del Carmen solar farm

UK-based, closed-end company Foresight Solar has announced that it has reportedly acquired the Huelva-based Virgen del Carmen solar farm, of 26.1 MW capacity – its first Spanish solar asset.

As per sources familiar with the knowledge of the matter, the project is in the nation’s south-west region and is the solar PV fund’s debut acquisition in continental Europe. The project also represents Foresight Solar’s first investment in subsidy-free solar.

An official statement by Foresight Solar claims that this acquisition will be representing an investment of close to GBP 18 million (EUR 20.2 million), once the construction is completed. The project will benefit from a long-term PPA (Power Purchase Agreement) with Shell Energy Europe Limited, an arm of the popular Royal Dutch Shell Plc, for selling the electricity within a fixed price until 2030, the statement further read.

Reliable sources claim that the construction of the project is likely to commence at the beginning of the end of September 2020. The operations may start around the third quarter of 2021.

Foresight’s statement also claims that this acquisition will be funded with the help of the firm’s revolving credit facilities, and it has leveraged the regional expertise of Foresight Group, its investment manager, that manages an already existing renewable assets portfolio in Spain via its offices situated in Madrid.

As per sources familiar with the knowledge of the matter, this fund will be implementing a decade-long rolling GBP/EUR foreign currency hedging strategy that also covers the cash flows for the future, brought forth by the asset so as to eliminate any currency fluctuation exposure on returns.

Speaking on the acquisition, Alex Ohlsson, Chairman, Foresight Solar, has said that this acquisition is clearly a major demonstration of the firm’s ability to source as well as deliver stable cash flows at lucrative risk-adjusted returns, considering it has a fixed price, long-term PPA in place as well as a high production profile. The acquisition certainly marks a vital step in the company’s international expansion strategy,  Ohlsson further said.

Source Credits: https://www.renews.biz/62936/foresight-acquires-spanish-solar/