The ICO finances Sonnedix for a photovoltaic plant in Ciudad Real
27 April 2023
- The operation is based on a power purchase agreement (PPA) between Sonnedix and Sidenor under the guarantee of CESCE
The ICO has participated in a financing operation for Sonnedix for the photovoltaic plant (Sonnedix Fraile) located in Herencia (Ciudad Real). The plant has a total installed capacity of 36 MW, is 100% built, and will be operational from October 2022.
Sonnedix is an international independent renewable energy producer group engaged in developing, constructing, maintaining, managing, and selling energy from its renewable energy assets in OECD countries. It currently has more than 450 operating plants totalling more than 2.5 GW, plus a portfolio of projects under construction or in various stages of development totalling 7 GW, spread across 10 OECD countries.
The project has a power purchase agreement (PPA) between Sonnedix and Sidenor Aceros Especiales, the European leader in producing special long steels. The term of the contract is 12 years and includes a guarantee from FERGEI (Fondo Español de Reserva para Garantías de Entidades Electrointensivas), granted by CESCE on behalf of the Spanish State.
This is the first power purchase and sale agreement to be signed with the support of the FERGEI, implemented by the Ministry of Industry, Trade, and Tourism in collaboration with Cesce to support Spanish electro-intensive companies by covering risks derived from the purchase and sale of electricity supply.
The renewable energy supplied under the PPA will come from the 36MW Sonnedix Fraile solar photovoltaic plant in Ciudad Real, in the financing of which ICO and Bankinter have participated. The energy supply started in March 2023 and will last for 12 years.
This operation is part of the objectives of the ICO Group's 2022-2027 Strategy and represents an important step forward in public-private collaboration to promote the financing of renewable energy projects in Spain, helping to boost the energy transition process.