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ContourGlobal to buy Acciona’s solar thermal assets in Spain for $1.1bn

EBR Staff Writer Published 28 February 2018

UK-based ContourGlobal has agreed to buy a 250MW portfolio of concentrating solar power (CSP) plants in South-West Spain from Acciona Energía for a price of €962m ($1.1bn).

The portfolio to be bought is made up of five 50MW CSP plants, collectively, called as Acciona Termosolar Group.

The acquisition is expected to consolidate the renewable footprint of ContourGlobal in Europe. ContourGlobal said that the transaction will combine its solar and Spanish thermal operating expertise into a substantial portfolio of assets, facilitating synergies with existing European operations.

For Acciona Energía, the transaction, which could increase by €27m to €1.12bn, based on certain milestones, will help reduce the debt of its parent Acciona by €760m this year.

The five CSP plants are located in Alvarado, Majadas, Orellana and in Palma del Rio, which is home to the Plama I and II plants. All the five solar thermal plants were developed and brought into service between 2009 and 2012.

ContourGlobal said that the CSP plants are all regulated under the Spanish renewable remuneration scheme, thereby ensuring long-term stable and regulated cash-flows.

Put together, the Spanish solar thermal plants generate enough energy to meet the power consumption needs of nearly 161,000 homes.

ContourGlobal revealed that its operating platform in Arrubal will help the company to integrate the acquired facilities efficiently into the existing European renewable business.

ContourGlobal president and CEO Joseph C. Brandt said: "Over the past seven years we have enjoyed successful thermal operations in Spain and developed a solar business in Central and Southern Europe.

“Today's acquisition enables us to combine this operating expertise in a sizable portfolio of long-term regulated assets which will enable us to leverage our existing footprint in the country and deliver on our commitment to pursue operationally led significant growth on our path to double run-rate Adjusted EBITDA without new equity in five years."

The acquisition of the Acciona CSP plants by ContourGlobal is anticipated to be completed in the second quarter, subject to approvals from shareholders and the Spanish antitrust authority.

Image: Acciona will sell its five solar thermal plants in Spain to ContourGlobal. Photo: courtesy of Acciona Energy.